Market Review - 02/05/2015 07:54GMT
Dollar rallies broadly in thin New York session Friday
The greenback rallied across the board on Friday in New York trading on short covering in the U.S. dollardue release of a slew of soft U.S. economic data.
U.S. manufacturing PMI came in at 54.1 n U. of Michigan consumer sentiment was reported at 94.9.
Versus the Japanese yen, the greenback gained strongly at Asian open and continued to ratchet higher through out Asian and European sessions. Intra-day ascent accelerated in New York morning after the release of U.S. data and rose to an intra-day high at 120.29 before stabilising in New York afternoon.
Although the single currency traded sideways in Asia and rose to 1.1285 in European morning, then to session high at 1.1290 in New York morning, price pared its gains and tumbled to an intra-day low at 1.1175 on dollar's broad-based strength.
Despite trading sideways in Asia and edging up to session high at 1.5397 in European morning, the British pound tumbled after the release of much-weaker-than-expected UK manufacturing PMI. Cable continued to ratchet lower in New York morning and hit an intra-day low at 1.1176 before staging a recovery in New York afternoon.
UK manufacturing PMI came in at 51.9 vs forecast of 54.6.
In other news, Fed's Mester said 'more work needed on nexus of financial stability, monetary policy; Fed must quantify effects of households on macroeconomy in order to achieve monetary goals; Fed needs to better understand how to adjust policy based on financial system risks; improved household finance a key to forecast for economic expansion, inflation n labor improvements.'
Data to be released this week:
Japan market holiday, Australia building approvals, China manufacturing PMI, Swiss manufacturing PMI, Italy manufacturing PMI, France manufacturing PMI, Germany manufacturing PMI, UK market holiday, EU manufacturing PMI, sentix index, U.S. factory orders and durable goods on Monday.
Australia new home sales, exports, imports, trade balance, RBA rate decision, France budget balance, UK construction PMI, EU producer prices, Canada imports, exports, trade balance, U.S. trade balance, redbook retail sales, ISM non-manufacturing and services PMI on Tuesday.
New Zealand labour cost, unemployment rate, Japan market holiday, Australia retail sales, China services PMI, Italy services PMI, France services PMI, Germany services PMI, EU services PMI, retail sales, UK services PMI, Canada Ivey PMI and U.S. ADP employment on Wednesday.
Australia unemployment, Japan services PMI, Germany factory orders, France exports, imports, trade balance, U.S. jobless claims and Canada building permits on Thursday.
Japan BoJ meeting minutes, Australia RBA monetary policy statement, China exports, imports, trade balance, Swiss unemployment rate, Germany industrial production, exports, imports, trade balance, current account, Italy industrial output and UK trade balance on Friday.
Dollar rallies broadly in thin New York session Friday
The greenback rallied across the board on Friday in New York trading on short covering in the U.S. dollardue release of a slew of soft U.S. economic data.
U.S. manufacturing PMI came in at 54.1 n U. of Michigan consumer sentiment was reported at 94.9.
Versus the Japanese yen, the greenback gained strongly at Asian open and continued to ratchet higher through out Asian and European sessions. Intra-day ascent accelerated in New York morning after the release of U.S. data and rose to an intra-day high at 120.29 before stabilising in New York afternoon.
Although the single currency traded sideways in Asia and rose to 1.1285 in European morning, then to session high at 1.1290 in New York morning, price pared its gains and tumbled to an intra-day low at 1.1175 on dollar's broad-based strength.
Despite trading sideways in Asia and edging up to session high at 1.5397 in European morning, the British pound tumbled after the release of much-weaker-than-expected UK manufacturing PMI. Cable continued to ratchet lower in New York morning and hit an intra-day low at 1.1176 before staging a recovery in New York afternoon.
UK manufacturing PMI came in at 51.9 vs forecast of 54.6.
In other news, Fed's Mester said 'more work needed on nexus of financial stability, monetary policy; Fed must quantify effects of households on macroeconomy in order to achieve monetary goals; Fed needs to better understand how to adjust policy based on financial system risks; improved household finance a key to forecast for economic expansion, inflation n labor improvements.'
Data to be released this week:
Japan market holiday, Australia building approvals, China manufacturing PMI, Swiss manufacturing PMI, Italy manufacturing PMI, France manufacturing PMI, Germany manufacturing PMI, UK market holiday, EU manufacturing PMI, sentix index, U.S. factory orders and durable goods on Monday.
Australia new home sales, exports, imports, trade balance, RBA rate decision, France budget balance, UK construction PMI, EU producer prices, Canada imports, exports, trade balance, U.S. trade balance, redbook retail sales, ISM non-manufacturing and services PMI on Tuesday.
New Zealand labour cost, unemployment rate, Japan market holiday, Australia retail sales, China services PMI, Italy services PMI, France services PMI, Germany services PMI, EU services PMI, retail sales, UK services PMI, Canada Ivey PMI and U.S. ADP employment on Wednesday.
Australia unemployment, Japan services PMI, Germany factory orders, France exports, imports, trade balance, U.S. jobless claims and Canada building permits on Thursday.
Japan BoJ meeting minutes, Australia RBA monetary policy statement, China exports, imports, trade balance, Swiss unemployment rate, Germany industrial production, exports, imports, trade balance, current account, Italy industrial output and UK trade balance on Friday.
Recommended Content
Editors’ Picks
EUR/USD trades with negative bias, holds above 1.0700 as traders await US PCE Price Index
EUR/USD edges lower during the Asian session on Friday and moves away from a two-week high, around the 1.0740 area touched the previous day. Spot prices trade around the 1.0725-1.0720 region and remain at the mercy of the US Dollar price dynamics ahead of the crucial US data.
USD/JPY jumps above 156.00 on BoJ's steady policy
USD/JPY has come under intense buying pressure, surging past 156.00 after the Bank of Japan kept the key rate unchanged but tweaked its policy statement. The BoJ maintained its fiscal year 2024 and 2025 core inflation forecasts, disappointing the Japanese Yen buyers.
Gold price flatlines as traders look to US PCE Price Index for some meaningful impetus
Gold price lacks any firm intraday direction and is influenced by a combination of diverging forces. The weaker US GDP print and a rise in US inflation benefit the metal amid subdued USD demand. Hawkish Fed expectations cap the upside as traders await the release of the US PCE Price Index.
Sei Price Prediction: SEI is in the zone of interest after a 10% leap
Sei price has been in recovery mode for almost ten days now, following a fall of almost 65% beginning in mid-March. While the SEI bulls continue to show strength, the uptrend could prove premature as massive bearish sentiment hovers above the altcoin’s price.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.