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Market Review - 21/10/2013 22:50GMT
Dollar rebounds on expectation of upbeat U.S. jobs data
Dollar pared Friday's losses and gained slightly against other major currencies on Monday, as investors awaited the release of U.S. job report for September on Tuesday, which was two weeks late due to U.S. government shutdown, and speculated whether the Federal Reserve will delay plans to taper its QE program.
The single currency traded narrowly in Asian session and then met renewed selling interest at 1.3686 in European morning. Euro later fell to an intra-day low at 1.3651 in New York morning before rebounding to 1.3689 in New York afternoon.
Versus Japanese yen, the greenback found support at New Zealand low at 97.79 and ratcheted higher in Asian and European session due to active cross-selling on yen versus other currencies. The pair then climbed to intra-day high of 98.24 before trading sideways in New York afternoon.
The British pound retreated to 1.6153 in Asian morning and rebounded to intra-day high of 1.6181 in European morning, however, renewed selling interest there pushed price lower and then fell to session low of 1.6133 in New York morning before staging brief bounce to 1.6168.
In the other news, the Federal Reserve of Chicago’s President Charles L. Evans said 'will probably take a few months to sort out picture in the U.S. labor market after gov't shutdown; does not see financial stability risks at the moment; would favor putting place as much monetary accommodation as the economy needs; could start to reduce rate of bond purchases later due to budget battle in Washington; could also subsequently accelerate pace at which Fed tapers bond buying if U.S. recovery gathers strength; not worried by inflation pressures, economy has "awful lot of room" to grow once it picks up steam'
Bank of Japan’s Governor Haruhiko Kuroda said 'no change in view BoJ can achieve 2% inflation in roughly 2 years; Japan price growth spreading beyond rises in food and energy prices, expect CPI to gradually head toward 2%; too early to debate exit strategy for BoJ's quantitative easing policy; central bank has responsibility to achieve price stability, but government's fiscal, growth strategy will help smoothen the process’
On the data front, U.S. existing home sales in Sep came in at 5.29M n -1.9% m/m, versus the forecast of 5.30M n -3.3%, previous reading revised to 5.39M n 0.0% respectively.
Data to be released on Tuesday:
Swiss trade balance, U.K. PSNCR, public sector net borrowing, Canada retail sales, Delayed release of September U.S. non-farm payrolls, private payrolls, unemployment rate, average hourly earnings and Redbook retail sales.
Dollar rebounds on expectation of upbeat U.S. jobs data
Dollar pared Friday's losses and gained slightly against other major currencies on Monday, as investors awaited the release of U.S. job report for September on Tuesday, which was two weeks late due to U.S. government shutdown, and speculated whether the Federal Reserve will delay plans to taper its QE program.
The single currency traded narrowly in Asian session and then met renewed selling interest at 1.3686 in European morning. Euro later fell to an intra-day low at 1.3651 in New York morning before rebounding to 1.3689 in New York afternoon.
Versus Japanese yen, the greenback found support at New Zealand low at 97.79 and ratcheted higher in Asian and European session due to active cross-selling on yen versus other currencies. The pair then climbed to intra-day high of 98.24 before trading sideways in New York afternoon.
The British pound retreated to 1.6153 in Asian morning and rebounded to intra-day high of 1.6181 in European morning, however, renewed selling interest there pushed price lower and then fell to session low of 1.6133 in New York morning before staging brief bounce to 1.6168.
In the other news, the Federal Reserve of Chicago’s President Charles L. Evans said 'will probably take a few months to sort out picture in the U.S. labor market after gov't shutdown; does not see financial stability risks at the moment; would favor putting place as much monetary accommodation as the economy needs; could start to reduce rate of bond purchases later due to budget battle in Washington; could also subsequently accelerate pace at which Fed tapers bond buying if U.S. recovery gathers strength; not worried by inflation pressures, economy has "awful lot of room" to grow once it picks up steam'
Bank of Japan’s Governor Haruhiko Kuroda said 'no change in view BoJ can achieve 2% inflation in roughly 2 years; Japan price growth spreading beyond rises in food and energy prices, expect CPI to gradually head toward 2%; too early to debate exit strategy for BoJ's quantitative easing policy; central bank has responsibility to achieve price stability, but government's fiscal, growth strategy will help smoothen the process’
On the data front, U.S. existing home sales in Sep came in at 5.29M n -1.9% m/m, versus the forecast of 5.30M n -3.3%, previous reading revised to 5.39M n 0.0% respectively.
Data to be released on Tuesday:
Swiss trade balance, U.K. PSNCR, public sector net borrowing, Canada retail sales, Delayed release of September U.S. non-farm payrolls, private payrolls, unemployment rate, average hourly earnings and Redbook retail sales.
