Market Review - 14/10/2014 23:08GMT
Euro falls sharply on surprise sharp drop in German ZEW economic sentiment
The singe currency tumbled from 1.2769 to as low as 1.2640 after a surprise sharp drop in German ZEW economic sentiment which came in at -3.6 in October versus expectation of 1.0 and previous reading of 6.9 in September.
German EconMin Gabriel said 'expects GDP growth of 1.2% in 2014 and 1.3% in 2015; sees exports up 3.4% in 2014 and 4.1% in 2015; sees CPI at 1.1% in 2014, 1.6% in 2015.'
Gabriel said 'geopolitical crises, moderate global growth weighing on German economy, domestic impetus remains intact; investment key to long-term growth and prosperity, Germany must invest significantly more in infrastructure and improve conditions for private investment; more debts in Germany will not create growth in Spain, Italy or Greece; Germany can still achieve balanced budget with no new debt next year based worries.'
FOMC minutes released of Tuesday showed that three regional Federal Reserve banks in September pressed again for an increase in the Fed's emergency lending rate ahead of last month's Fed policy meeting. Directors of the Dallas, Kansas City and Philadelphia Feds asked that the discount rate be raised by 25 basis points, to 1.0 percent, to reflect what they saw as improvement in the U.S. economy. The other nine Fed regional bank heads agreed to keep the discount rate at its current 0.75 percent.
The minutes stated "Federal Reserve Bank directors generally anticipated continued moderate economic growth" but also saw "continued slack in labor markets." With inflation and inflation expectations stable, "directors recommended that the current primary rate be maintained."
The greenback fell to a fresh 1-month low at 106.67 on Tuesday on renewed risk aversion due to the selloff in Nikkei-225 index which dropped sharply by 2.38% or 365 points to 14937.
The British pound nose-dived to as low as 1.5897 after the release of U.K. inflation data as September annual CPI came in at 1.2% versus street forecast of 1.4% whilst CPI unchanged in September versus forecast of a 0.2% rise.
Wednesday will see the release of China's CPI and PPI, Japan's industrial production, Germany's final CPI and HICP, U.K. ILO unemployment rate and claimant count unemployment change, Swiss ZEW investor sentiment, U.S. retail sales, NY Fed manufacturing, core PPI final demand, business inventories and Fed's Beige book.
Euro falls sharply on surprise sharp drop in German ZEW economic sentiment
The singe currency tumbled from 1.2769 to as low as 1.2640 after a surprise sharp drop in German ZEW economic sentiment which came in at -3.6 in October versus expectation of 1.0 and previous reading of 6.9 in September.
German EconMin Gabriel said 'expects GDP growth of 1.2% in 2014 and 1.3% in 2015; sees exports up 3.4% in 2014 and 4.1% in 2015; sees CPI at 1.1% in 2014, 1.6% in 2015.'
Gabriel said 'geopolitical crises, moderate global growth weighing on German economy, domestic impetus remains intact; investment key to long-term growth and prosperity, Germany must invest significantly more in infrastructure and improve conditions for private investment; more debts in Germany will not create growth in Spain, Italy or Greece; Germany can still achieve balanced budget with no new debt next year based worries.'
FOMC minutes released of Tuesday showed that three regional Federal Reserve banks in September pressed again for an increase in the Fed's emergency lending rate ahead of last month's Fed policy meeting. Directors of the Dallas, Kansas City and Philadelphia Feds asked that the discount rate be raised by 25 basis points, to 1.0 percent, to reflect what they saw as improvement in the U.S. economy. The other nine Fed regional bank heads agreed to keep the discount rate at its current 0.75 percent.
The minutes stated "Federal Reserve Bank directors generally anticipated continued moderate economic growth" but also saw "continued slack in labor markets." With inflation and inflation expectations stable, "directors recommended that the current primary rate be maintained."
The greenback fell to a fresh 1-month low at 106.67 on Tuesday on renewed risk aversion due to the selloff in Nikkei-225 index which dropped sharply by 2.38% or 365 points to 14937.
The British pound nose-dived to as low as 1.5897 after the release of U.K. inflation data as September annual CPI came in at 1.2% versus street forecast of 1.4% whilst CPI unchanged in September versus forecast of a 0.2% rise.
Wednesday will see the release of China's CPI and PPI, Japan's industrial production, Germany's final CPI and HICP, U.K. ILO unemployment rate and claimant count unemployment change, Swiss ZEW investor sentiment, U.S. retail sales, NY Fed manufacturing, core PPI final demand, business inventories and Fed's Beige book.
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