Market Review - 08/06/2015 22:55GMT
Dollar falls broadly on long liquidation
Despite last Friday's selloff to 1.1049 after release of much stronger-than-expected U.S. NFP, the single currency ratcheted higher on Monday due to dollar's broad-based weakness together with the rise in German Bund yields and solid German data as Germany's industrial output rose by 0.9% versus economists' forecast of 0.6% whilst trade balance rose to 22.3 billion in April against the expectation of 19.0 billion from upwardly revised reading of 19.4 billion in March.
Euro rebounded from intra-day low at 1.1083 (New Zealand) to 1.1178 in European morning and then rallied to as high as 1.1295 near New York close.
An EU official said that Greek officials met on Monday with EU Economics Commissioner Pierre Moscovici on what reforms Greece must implement to get new loans, but there was no new proposal from Athens to which its creditors could agree to. European Commission President Jean-Claude Juncker told German television network ARD on Monday that he was waiting for Greece to make its contributions to help the European Union resolve the eurozone crisis. The Wall Street Journal cited unnamed sources that Greece's international creditors last week proposed extending the country's bailout until the end of March 2016 in return for pension cuts, tax increases and other policy steps by Athens.
ECB's Noyer said 'QE has seemed to work, boosting growth prospects; eurozone governments need to accelerate structural reforms; reforms are being undertaken too slowly and timidly.'
In other news, a Bloomberg report cited President Barack Obama as saying he was worried about a strong dollar, however, both Obama and White House officials denied the report. The report came after reporters met France's President Francois Hollande ahead of the second day of the G7 summit. The greenback tumbled against the Japanese yen to as low as 124.30 near New York close before rebounding.
Despite last Friday's selloff to 1.5191 due to robust U.S. jobs report, the British pound swung wildly on Monday. Cable rebounded to 1.5305 in European morning and then fell to to 1.5222 but only to rally to 1.5354 near New York close on dollar's broad-based weakness.
Tuesday will see the release of New Zealand's manufacturing sales, U.K. BRC retail sales, China's CPI and PPI, Australia's NAB business confidence, Japan's consumer confidence index, Swiss unemployment rate and CPI, U.K.goods trade balance, eurozone revised GDP, U.K. inflation report hearings, U.S. Redbook, wholesales sales and wholesales inventories.
Dollar falls broadly on long liquidation
Despite last Friday's selloff to 1.1049 after release of much stronger-than-expected U.S. NFP, the single currency ratcheted higher on Monday due to dollar's broad-based weakness together with the rise in German Bund yields and solid German data as Germany's industrial output rose by 0.9% versus economists' forecast of 0.6% whilst trade balance rose to 22.3 billion in April against the expectation of 19.0 billion from upwardly revised reading of 19.4 billion in March.
Euro rebounded from intra-day low at 1.1083 (New Zealand) to 1.1178 in European morning and then rallied to as high as 1.1295 near New York close.
An EU official said that Greek officials met on Monday with EU Economics Commissioner Pierre Moscovici on what reforms Greece must implement to get new loans, but there was no new proposal from Athens to which its creditors could agree to. European Commission President Jean-Claude Juncker told German television network ARD on Monday that he was waiting for Greece to make its contributions to help the European Union resolve the eurozone crisis. The Wall Street Journal cited unnamed sources that Greece's international creditors last week proposed extending the country's bailout until the end of March 2016 in return for pension cuts, tax increases and other policy steps by Athens.
ECB's Noyer said 'QE has seemed to work, boosting growth prospects; eurozone governments need to accelerate structural reforms; reforms are being undertaken too slowly and timidly.'
In other news, a Bloomberg report cited President Barack Obama as saying he was worried about a strong dollar, however, both Obama and White House officials denied the report. The report came after reporters met France's President Francois Hollande ahead of the second day of the G7 summit. The greenback tumbled against the Japanese yen to as low as 124.30 near New York close before rebounding.
Despite last Friday's selloff to 1.5191 due to robust U.S. jobs report, the British pound swung wildly on Monday. Cable rebounded to 1.5305 in European morning and then fell to to 1.5222 but only to rally to 1.5354 near New York close on dollar's broad-based weakness.
Tuesday will see the release of New Zealand's manufacturing sales, U.K. BRC retail sales, China's CPI and PPI, Australia's NAB business confidence, Japan's consumer confidence index, Swiss unemployment rate and CPI, U.K.goods trade balance, eurozone revised GDP, U.K. inflation report hearings, U.S. Redbook, wholesales sales and wholesales inventories.
Recommended Content
Editors’ Picks
EUR/USD holds steady near 1.0650 amid risk reset
EUR/USD is holding onto its recovery mode near 1.0650 in European trading on Friday. A recovery in risk sentiment is helping the pair, as the safe-haven US Dollar pares gains. Earlier today, reports of an Israeli strike inside Iran spooked markets.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD is rebounding toward 1.2450 in early Europe on Friday, having tested 1.2400 after the UK Retail Sales volumes stagnated again in March, The pair recovers in tandem with risk sentiment, as traders take account of the likely Israel's missile strikes on Iran.
Gold: Middle East war fears spark fresh XAU/USD rally, will it sustain?
Gold price is trading close to $2,400 early Friday, reversing from a fresh five-day high reached at $2,418 earlier in the Asian session. Despite the pullback, Gold price remains on track to book the fifth weekly gain in a row.
Bitcoin Price Outlook: All eyes on BTC as CNN calls halving the ‘World Cup for Bitcoin’
Bitcoin price remains the focus of traders and investors ahead of the halving, which is an important event expected to kick off the next bull market. Amid conflicting forecasts from analysts, an international media site has lauded the halving and what it means for the industry.
Geopolitics once again take centre stage, as UK Retail Sales wither
Nearly a week to the day when Iran sent drones and missiles into Israel, Israel has retaliated and sent a missile into Iran. The initial reports caused a large uptick in the oil price.