Market Review - 22/04/2015 22:51 All times in GMT
U.S. dollar rises on upbeat U.S. existing home sales data
U.S. dollar rose broadly against major currencies after the release of U.S. existing home sales data which increased 6.1% to an annual rate of 5.19 million units in March, the highest level since September 2013. The percent rise was the largest since December 2010. Last month's sales also upbeated economists' expectations for a 5.03 million-unit rate.
The single currency swung wildly on Wednesday. Despite brief drop to 1.0717 in Asia on rumour that ECB is raising haircut on Greek bank collateral, buying interest quickly emerged and lifted the pair to 1.0801 in Europe but only to fall to an intra-day low of 1.0709 in New York after the release of upbeat U.S. existing home sales data.
New York Times report that ECB is raising haircut on Greek bank collateral, however, Reuters reported a short while ago this is not the case. A source familiar with the matter told Reuters that the ECB has not made any decision to raise the discount applied on the collateral offered by Greek banks but declining to comment on whether the option was being discussed.
A media report citing people with knowledge of the discussions said on Tuesday that ECB staff have prepared a proposal to reduce the value of such collateral. The ECB declined to comment.
German newspaper Handelsblatt stated 'ECB has raised emergency funding cap for Greek banks by about 1.5 billion euro to 75.5 billion.' German FinMin spokesman said 'we expect an interim report on Greece at EU FinMins meeting in Riga, we have modest expectations.'
Germany's Gabriel said 'expects euro exchange rate will also play a role for exporters next year; situation in Greece and overall rather weak growth in eurozone is risk for German growth as risks and uncertainty leads to firms putting off investments; it would be good if we could make progress on Greece but that's in the Greek government's hands rather than ours.'
The British pound found renewed buying interest at 1.4914 and jumped to 1.5047 in Europe after the release of upbeat MPC minutes. Cable later climbed to an intra-day high of 1.5080 in New York morning before retreating to around 1.5011.
U.S. dollar rose strongly against the Swiss franc after SNB said 'fewer exemptions from negative interest on sight deposit accounts at SNB; negative interest rates will now also apply to accounts held by enterprises linked to confederation and pension fund of confederation.' The pair rose from 0.9500 to as high as 0.9707 and closed near the day's high.
Thursday will see the release of China's HSBC manufacturing PMI, German GfK consumer sentiment, Germany's Markit manufacturing and service PMI, eurozone Markit manufacturing and service PMI, U.K. PSNCR and retail sales, U.S. new home sales and KC Fed manufacturing.
U.S. dollar rises on upbeat U.S. existing home sales data
U.S. dollar rose broadly against major currencies after the release of U.S. existing home sales data which increased 6.1% to an annual rate of 5.19 million units in March, the highest level since September 2013. The percent rise was the largest since December 2010. Last month's sales also upbeated economists' expectations for a 5.03 million-unit rate.
The single currency swung wildly on Wednesday. Despite brief drop to 1.0717 in Asia on rumour that ECB is raising haircut on Greek bank collateral, buying interest quickly emerged and lifted the pair to 1.0801 in Europe but only to fall to an intra-day low of 1.0709 in New York after the release of upbeat U.S. existing home sales data.
New York Times report that ECB is raising haircut on Greek bank collateral, however, Reuters reported a short while ago this is not the case. A source familiar with the matter told Reuters that the ECB has not made any decision to raise the discount applied on the collateral offered by Greek banks but declining to comment on whether the option was being discussed.
A media report citing people with knowledge of the discussions said on Tuesday that ECB staff have prepared a proposal to reduce the value of such collateral. The ECB declined to comment.
German newspaper Handelsblatt stated 'ECB has raised emergency funding cap for Greek banks by about 1.5 billion euro to 75.5 billion.' German FinMin spokesman said 'we expect an interim report on Greece at EU FinMins meeting in Riga, we have modest expectations.'
Germany's Gabriel said 'expects euro exchange rate will also play a role for exporters next year; situation in Greece and overall rather weak growth in eurozone is risk for German growth as risks and uncertainty leads to firms putting off investments; it would be good if we could make progress on Greece but that's in the Greek government's hands rather than ours.'
The British pound found renewed buying interest at 1.4914 and jumped to 1.5047 in Europe after the release of upbeat MPC minutes. Cable later climbed to an intra-day high of 1.5080 in New York morning before retreating to around 1.5011.
U.S. dollar rose strongly against the Swiss franc after SNB said 'fewer exemptions from negative interest on sight deposit accounts at SNB; negative interest rates will now also apply to accounts held by enterprises linked to confederation and pension fund of confederation.' The pair rose from 0.9500 to as high as 0.9707 and closed near the day's high.
Thursday will see the release of China's HSBC manufacturing PMI, German GfK consumer sentiment, Germany's Markit manufacturing and service PMI, eurozone Markit manufacturing and service PMI, U.K. PSNCR and retail sales, U.S. new home sales and KC Fed manufacturing.
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.