Market Review - 21/08/2014 23:04GMT
Dollar retreats on profit-taking ahead of Friday's Fed Chair Yellen speech in Jackson Hole
U.S. dollar initially extended this week's rise initially against major currencies in Asia on Thursday, however, the greenback rebounded as investors took profit ahead of Friday's Fed Chair Yellen speech at the annual economic symposium of the Federal Reserve Bank of Kansas City held in Jackson Hole,Wyoming. Euro fell to a fresh near 1-year low at 1.3242 versus U.S. dollar in Asia before rebounding to 1.3288/90 on improved risk appetite in New York.
The greenback strengthened to a fresh 4-1/2 month peak at 103.96 in Asia before retreating to 103.60 in New York. Britain's FTSE-100, Germany's DAX and France's CAC-40 closed up 0.3%, 0.9% n 1.2% respectively. Dow Jones index currently rose by 79 points to 17058 near New York close.
On the data front, France manufacturing PMI came in weaker-than-expected at 46.5 versus forecast of 47.8 whilst services PMI came in better-than-expected at 51.1 versus forecast of 50.0. Germany services and manufacturing PMIs came in better-than-expected at 56.4 n 52.0 versus forecasts of 55.7 and 51.8 respectively.
The British pound fell to a fresh 4-month low of 1.6564 in Asia on Thursday, however, short-covering lifted price to 1.6598 in European morning before retreating briefly after the release of downbeat U.K. retail sales data which came in at 0.1% m/m and 2.6% y/y versus forecasts of 0.4% m/m and 3.0% y/y respectively. However, cable rebounded again and rose to 1.6602 before trading sideways in New York.
In other news, Fed's Williams said 'argument for earlier rate hike wud be bolstered by really good economic improvement, inflation moves back twd objective; rate hike in middle of 2015 seems reasonable; expects inflation will only gradually come back; still no convincing signs of higher wage growth.'
Friday will see the release of Canada's CPI and retail sales. Investors are reluctant to add bets ahead of a keynote speech at 14:00GMT by Fed Chair Janet Yellen who may provide her take on the latest data on labor markets at the Kansas City Fed's annual symposium in Jackson Hole, Wyoming.
Dollar retreats on profit-taking ahead of Friday's Fed Chair Yellen speech in Jackson Hole
U.S. dollar initially extended this week's rise initially against major currencies in Asia on Thursday, however, the greenback rebounded as investors took profit ahead of Friday's Fed Chair Yellen speech at the annual economic symposium of the Federal Reserve Bank of Kansas City held in Jackson Hole,Wyoming. Euro fell to a fresh near 1-year low at 1.3242 versus U.S. dollar in Asia before rebounding to 1.3288/90 on improved risk appetite in New York.
The greenback strengthened to a fresh 4-1/2 month peak at 103.96 in Asia before retreating to 103.60 in New York. Britain's FTSE-100, Germany's DAX and France's CAC-40 closed up 0.3%, 0.9% n 1.2% respectively. Dow Jones index currently rose by 79 points to 17058 near New York close.
On the data front, France manufacturing PMI came in weaker-than-expected at 46.5 versus forecast of 47.8 whilst services PMI came in better-than-expected at 51.1 versus forecast of 50.0. Germany services and manufacturing PMIs came in better-than-expected at 56.4 n 52.0 versus forecasts of 55.7 and 51.8 respectively.
The British pound fell to a fresh 4-month low of 1.6564 in Asia on Thursday, however, short-covering lifted price to 1.6598 in European morning before retreating briefly after the release of downbeat U.K. retail sales data which came in at 0.1% m/m and 2.6% y/y versus forecasts of 0.4% m/m and 3.0% y/y respectively. However, cable rebounded again and rose to 1.6602 before trading sideways in New York.
In other news, Fed's Williams said 'argument for earlier rate hike wud be bolstered by really good economic improvement, inflation moves back twd objective; rate hike in middle of 2015 seems reasonable; expects inflation will only gradually come back; still no convincing signs of higher wage growth.'
Friday will see the release of Canada's CPI and retail sales. Investors are reluctant to add bets ahead of a keynote speech at 14:00GMT by Fed Chair Janet Yellen who may provide her take on the latest data on labor markets at the Kansas City Fed's annual symposium in Jackson Hole, Wyoming.
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