Market Review - 30/07/2015 19:54 GMT
U.S. dollar rises broadly on rate hike prospects
U.S. dollar rose broadly against major currencies on Thursday on rate hike prospects as U.S. Treasury yields rose after the release of U.S. gross domestic product data which encouraged bets that policymakers will start hiking U.S. interest rates as soon as September.
U.S. Commerce Department said gross domestic product expanded at a 2.3 percent annual rate as solid consumer spending offset the drag from weak business spending on equipment. First-quarter GDP, previously reported to have shrunk at a 0.2 percent pace, was revised up to show it rising at a 0.6 percent rate. The report also showed a pick-up in inflation during the quarter, adding speculation that the Fed may raise its first interest rate as soon as September since 2006. A separate report from the Labor Department showed first-time applications for unemployment benefits increased 12,000 last week to a seasonally adjusted 267,000. However, claims remained near their cycle lows.
The single currency remained under pressure throughout the day on Thursday following the selloff after Wednesday's release of FOMC statement. Euro ratcheted lower to 1.0991 to a session low of 1.0894 in New York before recovering.
IMF official said IMF won't reach deal with Greece on new debt program until Greece, Europeans find way to make Greece's debt sustainable; fund can only support a program that is comprehensive; 'will take some time' before these two sides are ready to take these decisions; fund will actively participate in discussions over Greece in the coming weeks; board accepted on Wednesday to authorize discussions on new Greek program.
Greek finance ministry official said finance minister to meet chief creditor representatives on Friday; dismissed FT report, saying IMF participating in talks.
The greenback found renewed buying at 123.88 in Asian morning on Thursday and then ratcheted higher following Wednesday's release of FOMC statement. The pair rose to as high as 124.58 due to dollar's broad-based strength before easing near New York close.
Cable swung wildly on Thur. Despite marginal fall below Wednesday's 1.5594 low to 1.5590 in Asia and then 1.5587 in European morning, short-covering lifted price to 1.5645. Cable then fell to 1.5563 before rebounding.
Friday will see the release of U.K. GfK consumer confidence, Japan's all household spending, CPI and unemployment rate, Australia's PPI, Japan's construction orders and housing starts, eurozone inflation, Canada's GDP, U.S. employment costs, Chicago PMI and Reuters/Michigan consumer sentiment index.
U.S. dollar rises broadly on rate hike prospects
U.S. dollar rose broadly against major currencies on Thursday on rate hike prospects as U.S. Treasury yields rose after the release of U.S. gross domestic product data which encouraged bets that policymakers will start hiking U.S. interest rates as soon as September.
U.S. Commerce Department said gross domestic product expanded at a 2.3 percent annual rate as solid consumer spending offset the drag from weak business spending on equipment. First-quarter GDP, previously reported to have shrunk at a 0.2 percent pace, was revised up to show it rising at a 0.6 percent rate. The report also showed a pick-up in inflation during the quarter, adding speculation that the Fed may raise its first interest rate as soon as September since 2006. A separate report from the Labor Department showed first-time applications for unemployment benefits increased 12,000 last week to a seasonally adjusted 267,000. However, claims remained near their cycle lows.
The single currency remained under pressure throughout the day on Thursday following the selloff after Wednesday's release of FOMC statement. Euro ratcheted lower to 1.0991 to a session low of 1.0894 in New York before recovering.
IMF official said IMF won't reach deal with Greece on new debt program until Greece, Europeans find way to make Greece's debt sustainable; fund can only support a program that is comprehensive; 'will take some time' before these two sides are ready to take these decisions; fund will actively participate in discussions over Greece in the coming weeks; board accepted on Wednesday to authorize discussions on new Greek program.
Greek finance ministry official said finance minister to meet chief creditor representatives on Friday; dismissed FT report, saying IMF participating in talks.
The greenback found renewed buying at 123.88 in Asian morning on Thursday and then ratcheted higher following Wednesday's release of FOMC statement. The pair rose to as high as 124.58 due to dollar's broad-based strength before easing near New York close.
Cable swung wildly on Thur. Despite marginal fall below Wednesday's 1.5594 low to 1.5590 in Asia and then 1.5587 in European morning, short-covering lifted price to 1.5645. Cable then fell to 1.5563 before rebounding.
Friday will see the release of U.K. GfK consumer confidence, Japan's all household spending, CPI and unemployment rate, Australia's PPI, Japan's construction orders and housing starts, eurozone inflation, Canada's GDP, U.S. employment costs, Chicago PMI and Reuters/Michigan consumer sentiment index.
Recommended Content
Editors’ Picks
AUD/USD posts gain, yet dive below 0.6500 amid Aussie CPI, ahead of US GDP
The Aussie Dollar finished Wednesday’s session with decent gains of 0.15% against the US Dollar, yet it retreated from weekly highs of 0.6529, which it hit after a hotter-than-expected inflation report. As the Asian session begins, the AUD/USD trades around 0.6495.
USD/JPY finds its highest bids since 1990, approaches 156.00
USD/JPY broke into its highest chart territory since June of 1990 on Wednesday, peaking near 155.40 for the first time in 34 years as the Japanese Yen continues to tumble across the broad FX market.
Gold stays firm amid higher US yields as traders await US GDP data
Gold recovers from recent losses, buoyed by market interest despite a stronger US Dollar and higher US Treasury yields. De-escalation of Middle East tensions contributed to increased market stability, denting the appetite for Gold buying.
Ethereum suffers slight pullback, Hong Kong spot ETH ETFs to begin trading on April 30
Ethereum suffered a brief decline on Wednesday afternoon despite increased accumulation from whales. This follows Ethereum restaking protocol Renzo restaked ETH crashing from its 1:1 peg with ETH and increased activities surrounding spot Ethereum ETFs.
Dow Jones Industrial Average hesitates on Wednesday as markets wait for key US data
The DJIA stumbled on Wednesday, falling from recent highs near 38,550.00 as investors ease off of Tuesday’s risk appetite. The index recovered as US data continues to vex financial markets that remain overwhelmingly focused on rate cuts from the US Fed.