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Market Review - 27/08/2013 21:37GMT
Yen and swiss franc rise broadly on escalation of tension in Syria
The Japanese yen rallied sharply higher against other currencies on Tuesday on demand for the safe-haven currencies including the Swiss franc as U.S. and its allies poised to take military action against the Syrian government. The selloff in global and emerging stock markets also supported the Japanese yen.
Earlier in Asia, despite dollar's brief recovery against the yen from 98.05 to 98.39, the pair fell sharply due to the weakness in Japan's Nikkei N225 index. Intra-day decline then accelerated in European morning on active cross buying of yen versus other currencies on risk aversion as the geopolitical tension in Syria escalated. The pair eventually hit session low at 96.99 in New York afternoon before stabilising.
The single currency went through a roller-coaster session on Tuesday. Despite initial brief rise to 1.3391 in Asian morning, renewed selling interest pressured the pair to 1.3356 in European morning, price then tumbled to a low at 1.3322 on active cross selling of euro versus yen together with the selloff in European equities due to the geopolitical tension in Syria. Later, although euro dipped to 1.3328 in New York morning, dollar's weakness after the release of lower-than-expected U.S home price index lifted the pair above 1.3391 to 1.3399 before stabilising in New York afternoon.
U.S. S&P/Case-Shiller home price index came in at 0.9% m/m and 12.2% y/y, versus the forecast of 1.0% and 12.1%.
Despite cable's initial brief recovery to 1.5592, the pair dropped to 1.5562 in Asian morning, active cross selling of sterling versus euro together with the steep fall in eur/usd pressured the pair to 1.5500 in European morning. Later, although the pound fell further to a 1-week low at 1.5482 in New York morning, dollar's weakness lifted the pair to 1.5556.
On the data front, U.S. consumer confidence came in at 81.5, better than the forecast of 79.0. German Ifo business climate in Aug came in at 107.5, better than the forecast of 107.0. Current assessment was released at 112.0, stronger than the expectation of 111.0.
Data to be released on Wednesday :
Swiss consumption indicator, Germany Gfk consumer confidence, Import price index, U.K. CBI distributes trades, U.S. pending home sales.
Yen and swiss franc rise broadly on escalation of tension in Syria
The Japanese yen rallied sharply higher against other currencies on Tuesday on demand for the safe-haven currencies including the Swiss franc as U.S. and its allies poised to take military action against the Syrian government. The selloff in global and emerging stock markets also supported the Japanese yen.
Earlier in Asia, despite dollar's brief recovery against the yen from 98.05 to 98.39, the pair fell sharply due to the weakness in Japan's Nikkei N225 index. Intra-day decline then accelerated in European morning on active cross buying of yen versus other currencies on risk aversion as the geopolitical tension in Syria escalated. The pair eventually hit session low at 96.99 in New York afternoon before stabilising.
The single currency went through a roller-coaster session on Tuesday. Despite initial brief rise to 1.3391 in Asian morning, renewed selling interest pressured the pair to 1.3356 in European morning, price then tumbled to a low at 1.3322 on active cross selling of euro versus yen together with the selloff in European equities due to the geopolitical tension in Syria. Later, although euro dipped to 1.3328 in New York morning, dollar's weakness after the release of lower-than-expected U.S home price index lifted the pair above 1.3391 to 1.3399 before stabilising in New York afternoon.
U.S. S&P/Case-Shiller home price index came in at 0.9% m/m and 12.2% y/y, versus the forecast of 1.0% and 12.1%.
Despite cable's initial brief recovery to 1.5592, the pair dropped to 1.5562 in Asian morning, active cross selling of sterling versus euro together with the steep fall in eur/usd pressured the pair to 1.5500 in European morning. Later, although the pound fell further to a 1-week low at 1.5482 in New York morning, dollar's weakness lifted the pair to 1.5556.
On the data front, U.S. consumer confidence came in at 81.5, better than the forecast of 79.0. German Ifo business climate in Aug came in at 107.5, better than the forecast of 107.0. Current assessment was released at 112.0, stronger than the expectation of 111.0.
Data to be released on Wednesday :
Swiss consumption indicator, Germany Gfk consumer confidence, Import price index, U.K. CBI distributes trades, U.S. pending home sales.
