Market Review - 26/02/2015 23:08GMT
Dollar rallies on upbeat U.S. data and Bullard hawkish comments
The greenback rallied broadly against majority of its peers on Thursday on comments from Federal Reserve's James Bullard together with upbeat U.S. data.
U.S. core CPI mm came in slightly better-than-expected at 0.2% vs forecast of 0.1%. Durable goods also came in better-than-expected at 2.8% vs forecast of 1.7%.
Fed's Bullard said 'FOMC shud remove patient fm policy statement in March, clear way for rate hike; U.S. inflation pretty stable; effects of strg dlr on policy, economy are marginal; expects unemployment below 5% in the second half of this year.'
Although the single currency traded sideways in Asia and edged lower to 1.1344 in European morning, price rebounded to 1.1380. However, renewed selling emerged there and euro tumbled ahead of New York open. Intra-day decline accelerated in New York morning on dollar's broad-based strength and fell to session low at 1.1184 before stabilizing.
Versus the Japanese yen, the greenback met renewed selling at 119.09 and price retreated to session low at 118.69 in early European morning. However, renewed buying there lifted the pair and price rallied to an intra-day high at 119.49 in New York afternoon on dollar's strength.
The British pound traded with a firm bias in Asia and gained to session high at 1.5554 before retreating to 1.5516 in early European morning. Intra-day decline accelerated in New York on dollar's rally and price tumbled to an intra-day low at 1.5397 in New York morning before stabilizing.
In other news, Fed's Williams said 'expect to reach full employment this year; important to look at underlying inflation trends; core inflation is relatively stable; stronger labor mkt will lead to wage growth, 2% inflation by end of next year; Fed needs to get away fm explicit fwd guidance on rate path.'
On the data front, U.S. jobless claims rose to 313K fm prev. figure of 282K. Germany consumer sentiment came in better-than-expected at 9.7 vs forecast of 9.5 whilst unemployment rate remain unchanged at 6.5%.
Data to be released on Friday:
Japan inflation, unemployment rate, retail sales, industrial output, housing starts, construction orders, UK consumer confidence, France producer prices, Swiss KOF indicator, Italy CPI, Germany CPI, import price index, U.S. GDP, Chicago PMI and pending home sales.
Dollar rallies on upbeat U.S. data and Bullard hawkish comments
The greenback rallied broadly against majority of its peers on Thursday on comments from Federal Reserve's James Bullard together with upbeat U.S. data.
U.S. core CPI mm came in slightly better-than-expected at 0.2% vs forecast of 0.1%. Durable goods also came in better-than-expected at 2.8% vs forecast of 1.7%.
Fed's Bullard said 'FOMC shud remove patient fm policy statement in March, clear way for rate hike; U.S. inflation pretty stable; effects of strg dlr on policy, economy are marginal; expects unemployment below 5% in the second half of this year.'
Although the single currency traded sideways in Asia and edged lower to 1.1344 in European morning, price rebounded to 1.1380. However, renewed selling emerged there and euro tumbled ahead of New York open. Intra-day decline accelerated in New York morning on dollar's broad-based strength and fell to session low at 1.1184 before stabilizing.
Versus the Japanese yen, the greenback met renewed selling at 119.09 and price retreated to session low at 118.69 in early European morning. However, renewed buying there lifted the pair and price rallied to an intra-day high at 119.49 in New York afternoon on dollar's strength.
The British pound traded with a firm bias in Asia and gained to session high at 1.5554 before retreating to 1.5516 in early European morning. Intra-day decline accelerated in New York on dollar's rally and price tumbled to an intra-day low at 1.5397 in New York morning before stabilizing.
In other news, Fed's Williams said 'expect to reach full employment this year; important to look at underlying inflation trends; core inflation is relatively stable; stronger labor mkt will lead to wage growth, 2% inflation by end of next year; Fed needs to get away fm explicit fwd guidance on rate path.'
On the data front, U.S. jobless claims rose to 313K fm prev. figure of 282K. Germany consumer sentiment came in better-than-expected at 9.7 vs forecast of 9.5 whilst unemployment rate remain unchanged at 6.5%.
Data to be released on Friday:
Japan inflation, unemployment rate, retail sales, industrial output, housing starts, construction orders, UK consumer confidence, France producer prices, Swiss KOF indicator, Italy CPI, Germany CPI, import price index, U.S. GDP, Chicago PMI and pending home sales.
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