acetraderfx
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Market Review
01/09/2013 22:24GMT
Dollar rises against euro on upbeat U.S. consumer confidence
The greenback strengthened versus the euro on Friday due to better-than-expected University of Michigan consumer confidence, supporting the view that the Federal Reserve will begin to reduce its stimulus measures in September.
Although the single currency staged a recovery to 1.3255 in Asian morning, active cross selling of euro versus other currencies pressured the pair to 1.3223 in European morning before rebounding to 1.3253. Later, dollar's broad-based strength sent the pair below Thursday's low at 1.3219 and price eventually hit a 4-week low at 1.3173 after the release of stronger-than-expected U.S. University of Michigan consumer confidence (82.1 versus 80.5) before staging a recovery in late New York afternoon session.
Versus the Japanese yen, despite dollar's brief rise to 98.47 at Tokyo open, failure to re-test Thursday's top at 98.52 prompted selling of dollar, price dropped to 98.07 in Asia on the decline in the Japanese Nikkei index afterJapan Finance Minister Aso's comment of implementing the planned sales tax hike next April. Later, cross buying of yen versus euro pressured the pair from 98.39 to a low at 97.89 in European morning but price then rebounded strongly to 98.34 in New York morning on dollar's renewed strength before moving sideways.
Although the British pound edged higher to 1.5528 in European morning, cross selling of sterling versus other currencies pressured the pair to 1.5477. Price later dropped in tandem with euro to intra-day low at 1.5462 in New York morning before staging a recovery near New York close.
On the data front, U.S. Chicago August PMI came in at 53.0, same as the street forecast. U.S. personal income and spending were 0.1% n 0.1% respectively, lower than the forecast of 0.2% n 0.3%. EU economic sentiment in August came in at 95.2, better than forecast of 93.8. EU Unemployment rate in Jul remained at 12.1%, same as expectation. EU CPI estimate in August came in at 1.3%, less than the forecast of 1.4%. Germany retail sales were -1.4% m/m and 2.3% y/y, versus market expectation of 0.6% and 1.8% respectively.
In other news, ECB's Nowotny said 'forward guidance means markets should not expect rate rise for some time; central issue is inflation expectations, which are stable.' Japan FinMin Aso says ' failure to raise sales tax could lead to fall in share prices, JGBs; Friday's economic data show favorable trend for sales tax hike.'
Data to be released next week :
Monday: Australia building approvals, Japan business capex, China HSBC Markit Manufacturing PMI, U.K. hometrack housing survey, manufacturing PMI, Swiss PMI, Italy manufacturing PMI, France manufacturing PMI, Germany manufacturing PMI, EU manufacturing PMI on Monday. Canada and U.S. financial markets are closed due to public holiday.
Tuesday: Australia retail sales, rate decision, U.K. retail sales, PMI construction, Swiss GDP, EU PPI, U.S. manufacturing PMI, construction spending, ISM manufacturing.
Wednesday: Australia GDP, China HSBC Markit Service PMI, U.K. Service PMI, shop price index, France Service PMI, PPI, Italy Service PMI, EU Service PMI, GDP, retail sales, Germany Service PMI, Canada import, export, trade balance, rate decision, U.S. trade balance, retail sales.
Thursday: Australia trade balance, Japan rate decision, U.K. employment confidence, rate decision, Germany factory orders, France unemployment rate, ECB rate decision, U.S. ADP employment, jobless claims, factory orders, ISM non-manufacturing, durable goods.
Friday: Japan leading indicator, Germany trade balance, current account, import export, industrial production, France trade balance, consumer confidence, Swiss CPI, industrial production, U.K. industrial production, manufacturing production, trade balance, U.S. non-farm payrolls, unemployment rate, average hourly earning, Canada unemployment rate, PMI.
01/09/2013 22:24GMT
Dollar rises against euro on upbeat U.S. consumer confidence
The greenback strengthened versus the euro on Friday due to better-than-expected University of Michigan consumer confidence, supporting the view that the Federal Reserve will begin to reduce its stimulus measures in September.
Although the single currency staged a recovery to 1.3255 in Asian morning, active cross selling of euro versus other currencies pressured the pair to 1.3223 in European morning before rebounding to 1.3253. Later, dollar's broad-based strength sent the pair below Thursday's low at 1.3219 and price eventually hit a 4-week low at 1.3173 after the release of stronger-than-expected U.S. University of Michigan consumer confidence (82.1 versus 80.5) before staging a recovery in late New York afternoon session.
Versus the Japanese yen, despite dollar's brief rise to 98.47 at Tokyo open, failure to re-test Thursday's top at 98.52 prompted selling of dollar, price dropped to 98.07 in Asia on the decline in the Japanese Nikkei index afterJapan Finance Minister Aso's comment of implementing the planned sales tax hike next April. Later, cross buying of yen versus euro pressured the pair from 98.39 to a low at 97.89 in European morning but price then rebounded strongly to 98.34 in New York morning on dollar's renewed strength before moving sideways.
Although the British pound edged higher to 1.5528 in European morning, cross selling of sterling versus other currencies pressured the pair to 1.5477. Price later dropped in tandem with euro to intra-day low at 1.5462 in New York morning before staging a recovery near New York close.
On the data front, U.S. Chicago August PMI came in at 53.0, same as the street forecast. U.S. personal income and spending were 0.1% n 0.1% respectively, lower than the forecast of 0.2% n 0.3%. EU economic sentiment in August came in at 95.2, better than forecast of 93.8. EU Unemployment rate in Jul remained at 12.1%, same as expectation. EU CPI estimate in August came in at 1.3%, less than the forecast of 1.4%. Germany retail sales were -1.4% m/m and 2.3% y/y, versus market expectation of 0.6% and 1.8% respectively.
In other news, ECB's Nowotny said 'forward guidance means markets should not expect rate rise for some time; central issue is inflation expectations, which are stable.' Japan FinMin Aso says ' failure to raise sales tax could lead to fall in share prices, JGBs; Friday's economic data show favorable trend for sales tax hike.'
Data to be released next week :
Monday: Australia building approvals, Japan business capex, China HSBC Markit Manufacturing PMI, U.K. hometrack housing survey, manufacturing PMI, Swiss PMI, Italy manufacturing PMI, France manufacturing PMI, Germany manufacturing PMI, EU manufacturing PMI on Monday. Canada and U.S. financial markets are closed due to public holiday.
Tuesday: Australia retail sales, rate decision, U.K. retail sales, PMI construction, Swiss GDP, EU PPI, U.S. manufacturing PMI, construction spending, ISM manufacturing.
Wednesday: Australia GDP, China HSBC Markit Service PMI, U.K. Service PMI, shop price index, France Service PMI, PPI, Italy Service PMI, EU Service PMI, GDP, retail sales, Germany Service PMI, Canada import, export, trade balance, rate decision, U.S. trade balance, retail sales.
Thursday: Australia trade balance, Japan rate decision, U.K. employment confidence, rate decision, Germany factory orders, France unemployment rate, ECB rate decision, U.S. ADP employment, jobless claims, factory orders, ISM non-manufacturing, durable goods.
Friday: Japan leading indicator, Germany trade balance, current account, import export, industrial production, France trade balance, consumer confidence, Swiss CPI, industrial production, U.K. industrial production, manufacturing production, trade balance, U.S. non-farm payrolls, unemployment rate, average hourly earning, Canada unemployment rate, PMI.
