Market Review - 29/09/2014 22:44GMT
Dollar pares initial gain on weakness in global stocks
The greenback pared its initial gains and retreated later in Europe and New York on risk aversion due to the retreat in global stocks.
The single currency continued its recent descent and dropped to a fresh 2-month trough at 1.2664 in Asia. Later, euro pared its losses and rose to 1.2698 in early European morning on dollar's broad-based weakness and then higher to session high at 1.2715 at New York open. However, the pair came under renewed selling pressure and dropped again to 1.2678.
Versus the Japanese yen, the greenback traded with a firm undertone in Asia and rose to a fresh 6-year peak at 109.75 ahead of European open, however, dollar pared its gains and dropped to session low at 109.13 in New York morning on dollar's broad-based retreat. Later, the pair staged a recovery to 109.51 in New York afternoon before stabilizing.
The British pound dropped to session low at 1.6210 in New Zealand and continued to remain under pressure till European open. However, the pair found some support and rebounded to 1.6262 in early European morning and then higher to 1.6275 in New York morning before retreating again.
In other news, Fed's Evans said 'we getting closer to the date when policy normalization will come about; we'll take stronger dollar into account in the way it affects trade n inflation; sees appropriate first rate hike in first quarter 2016; wud not be calling for overshooting on inflation if unemployment were below 5%; in current environment wud be beneficial to put 2-year deadline on reaching 2% inflation.'
On the data front, Germany CPI m/m n y/y came in as expected at 0.0% n 0.8% respectively. U.S. pending home sales came in weaker-than-expected at -1.0% vs forecast of -0.1%.
Data to be released on Tuesday:
Japan unemployment, household spending, industrial output, retail sales, New Zealand RBNZ business outlook, China manufacturing PMI, Germany retail sales, unemployment, UK consumer confidence, house prices, GDP, France producer prices, Swiss KOF indicator, Italy unemployment, CPI, EU inflation, Canada GDP, producer prices, U.S. redbook retail sales, caseshiller house prices, Chicago PMI and consumer confidence.
Dollar pares initial gain on weakness in global stocks
The greenback pared its initial gains and retreated later in Europe and New York on risk aversion due to the retreat in global stocks.
The single currency continued its recent descent and dropped to a fresh 2-month trough at 1.2664 in Asia. Later, euro pared its losses and rose to 1.2698 in early European morning on dollar's broad-based weakness and then higher to session high at 1.2715 at New York open. However, the pair came under renewed selling pressure and dropped again to 1.2678.
Versus the Japanese yen, the greenback traded with a firm undertone in Asia and rose to a fresh 6-year peak at 109.75 ahead of European open, however, dollar pared its gains and dropped to session low at 109.13 in New York morning on dollar's broad-based retreat. Later, the pair staged a recovery to 109.51 in New York afternoon before stabilizing.
The British pound dropped to session low at 1.6210 in New Zealand and continued to remain under pressure till European open. However, the pair found some support and rebounded to 1.6262 in early European morning and then higher to 1.6275 in New York morning before retreating again.
In other news, Fed's Evans said 'we getting closer to the date when policy normalization will come about; we'll take stronger dollar into account in the way it affects trade n inflation; sees appropriate first rate hike in first quarter 2016; wud not be calling for overshooting on inflation if unemployment were below 5%; in current environment wud be beneficial to put 2-year deadline on reaching 2% inflation.'
On the data front, Germany CPI m/m n y/y came in as expected at 0.0% n 0.8% respectively. U.S. pending home sales came in weaker-than-expected at -1.0% vs forecast of -0.1%.
Data to be released on Tuesday:
Japan unemployment, household spending, industrial output, retail sales, New Zealand RBNZ business outlook, China manufacturing PMI, Germany retail sales, unemployment, UK consumer confidence, house prices, GDP, France producer prices, Swiss KOF indicator, Italy unemployment, CPI, EU inflation, Canada GDP, producer prices, U.S. redbook retail sales, caseshiller house prices, Chicago PMI and consumer confidence.
Recommended Content
Editors’ Picks
AUD/USD: A tough barrier remains around 0.6800
AUD/USD failed to maintain the earlier surpass of the 0.6800 barrier, eventually succumbing to the late rebound in the Greenback following the Fed’s decision to lower its interest rates by 50 bps.
EUR/USD still targets the 2024 peaks around 1.1200
EUR/USD added to Tuesday’s losses after the post-FOMC rebound in the US Dollar prompted the pair to give away earlier gains to three-week highs in the 1.1185-1.1190 band.
Gold surrenders gains and drops to weekly lows near $2,550
Gold prices reverses the initial uptick to record highs around the $$2,600 per ounce troy, coming under renewed downside pressure and revisiting the $2,550 zone amidst the late recovery in the US Dollar.
Australian Unemployment Rate expected to hold steady at 4.2% in August
The Australian Bureau of Statistics will release the monthly employment report at 1:30 GMT on Thursday. The country is expected to have added 25K new positions in August, while the Unemployment Rate is foreseen to remain steady at 4.2%.
Ethereum could rally to $2,817 following Fed's 50 bps rate cut
Ethereum (ETH) is trading above $2,330 on Wednesday as the market is recovering following the Federal Reserve's (Fed) decision to cut interest rates by 50 basis points. Meanwhile, Ethereum exchange-traded funds (ETF) recorded $15.1 million in outflows.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.