Market Review - 16/10/2014 22:30GMT
Dollar ends mixed in volatile session
Despite initial brief bounce to 1.2745 in Asia on Wednesday, the single currency ratcheted lower to 1.2763 in European morning before rebounding to 1.2824 on short-covering after the release of expected EZ inflation data but only to tumble to 1.2707 due to the sell off in globak stock markets before rebounding strongly to 1.2840 in New York after dovish comments from Fed's Bullard.
Fed's Bullard said 'macro fundamentals remain strg; Fed may want to pause taper of QE given drop in inflation expectation; depending on data Fed cud contemplate increasing bond purchases; keep options open; problems originating in Europe but affecting U.S. market; sticking with forecast for rate hike in Q1 2015; decline in inflation expectations a serious matter for the Fed; rise in the dollar a relatively small factor in the economy; QE a far more powerful policy tool than forward guidance.'
The greenback ratcheted lower against the Japanese yen from European high of 106.32 to 105.51 on renewed risk aversion due to the sell off in global stock markets, however, U.S. dollar rebounded to 106.31 in New York as Dow Jones index pared most of the intra-day losses.
The British pound also swung wildly against U.S. dollar on Thursday. Cable ratcheted lower from 1.6022 in Australia to 1.5952 at European open and then rebounded to 1.6027, however, price tumbled to an intra-day low of 1.5940 due to the sell off in global stock markets before rallying to 1.6086 in New York.
On Thursday, Federal Reserve Chair Janet Yellen visited the Connect facility in Chelsea, Massachusetts ahead of a Friday conference on income inequality, however, she did not comment on the economy or monetary policy during the visit. She spoke with officials and clients of the facility but did not take questions from media or issue remarks.
Friday will see the release of Japan's Tankan, Germany's whole price index, eurozone GDP, U.S. building permits and housing starts, Canada's CPI and preliminary U.S. University of Michigan sentiment.
Dollar ends mixed in volatile session
Despite initial brief bounce to 1.2745 in Asia on Wednesday, the single currency ratcheted lower to 1.2763 in European morning before rebounding to 1.2824 on short-covering after the release of expected EZ inflation data but only to tumble to 1.2707 due to the sell off in globak stock markets before rebounding strongly to 1.2840 in New York after dovish comments from Fed's Bullard.
Fed's Bullard said 'macro fundamentals remain strg; Fed may want to pause taper of QE given drop in inflation expectation; depending on data Fed cud contemplate increasing bond purchases; keep options open; problems originating in Europe but affecting U.S. market; sticking with forecast for rate hike in Q1 2015; decline in inflation expectations a serious matter for the Fed; rise in the dollar a relatively small factor in the economy; QE a far more powerful policy tool than forward guidance.'
The greenback ratcheted lower against the Japanese yen from European high of 106.32 to 105.51 on renewed risk aversion due to the sell off in global stock markets, however, U.S. dollar rebounded to 106.31 in New York as Dow Jones index pared most of the intra-day losses.
The British pound also swung wildly against U.S. dollar on Thursday. Cable ratcheted lower from 1.6022 in Australia to 1.5952 at European open and then rebounded to 1.6027, however, price tumbled to an intra-day low of 1.5940 due to the sell off in global stock markets before rallying to 1.6086 in New York.
On Thursday, Federal Reserve Chair Janet Yellen visited the Connect facility in Chelsea, Massachusetts ahead of a Friday conference on income inequality, however, she did not comment on the economy or monetary policy during the visit. She spoke with officials and clients of the facility but did not take questions from media or issue remarks.
Friday will see the release of Japan's Tankan, Germany's whole price index, eurozone GDP, U.S. building permits and housing starts, Canada's CPI and preliminary U.S. University of Michigan sentiment.
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