Market Review - 08/08/2015 08:38 All times in GMT
Dollar erases initial gains after mildly upbeat U.S. jobs report
The greenback surrendered the initial gains it made as a solid U.S. jobs report stoked speculation of a possible September rate hike by the Federal Reserve.
U.S. NFP came in slightly weaker-than-expected at 215K vs forecast of 223K whilst unemployment rate remain unchanged at 5.3%.
The single currency traded with a firm undertone in Asia and gained to 1.0950 in early European morning, then briefly to 1.0975 prior to the release of U.S. jobs report. However, a solid jobs report prompted dollar strength and euro tumbled to an intra-day low at 1.0856 in New York morning. Later, price pared its losses and rallied to session high at 1.0979 at New York midday before stabilizing.
Versus the Japanese yen, although the greenback traded with a firm bias in Asia and gained to 124.86 at European open, price fell briefly but sharply to 124.32 just ahead of U.S. jobs report release. Dollar, then rallied to intra-day high at 125.07 before surrendering its gains and tumbling to session low at 124.11 in New York morning.
The British pound remained under pressure in Asia after Thursday's selloff and weakened to 1.5488 in early European morning. Despite a brief rise to session high at 1.5547 at New York open, price tumbled to intra-day low at 1.5424 in New York morning on dollar's strength before rebounding to 1.5495.
In other news, SNB's Fritz Zurbruegg said 'weakening of franc in recent weeks goes in right direction; franc still strongly overvalued; negative swiss interest rates showing an impact; unclear where lower border for negative rates lies; SNB to keep negative rates as long as needed.'
On the data front, Germany exports and imports came in weaker-than-expected at -1.0% and -0.5% vs forecasts of -0.4% and 0.5% respectively.
Data to be released this week:
Japan current account, trade balance, BoJ economic survey, consumer confidence and EU sentix index on Monday.
UK BRC retail sales; Australia NAB business conditions, business confidence, Japan machine tool orders, Italy CPI, EU economic sentiment, Germany current conditions, economic sentiment, Canada housing starts, U.S. unit labor costs, redbook retail sales, wholesale inventories and wholesale sales on Tuesday.
Japan CGPI, machinery orders, industrial output, capacity utilisation, Australia WPI, consumer sentiment, China industrial output, retail sales, France current account, Italy trade balance, UK ILO unemployment rate, claimant count, average earnings, EU industrial production and U.S. Fed budget on Wednesday.
New Zealand manufacturing PMI, Japan machinery orders, Germany CPI, HICP, France CPI, Swiss PPI, Canada new housing price, U.S. export prices, import prices, retail sales and business inventories on Thursday.
New Zealand retail sales, France GDP, Germany GDP, Italy GDP, EU GDP, inflation, Canada manufacturing sales, U.S. capacity utilisation and industrial output on Friday.
Dollar erases initial gains after mildly upbeat U.S. jobs report
The greenback surrendered the initial gains it made as a solid U.S. jobs report stoked speculation of a possible September rate hike by the Federal Reserve.
U.S. NFP came in slightly weaker-than-expected at 215K vs forecast of 223K whilst unemployment rate remain unchanged at 5.3%.
The single currency traded with a firm undertone in Asia and gained to 1.0950 in early European morning, then briefly to 1.0975 prior to the release of U.S. jobs report. However, a solid jobs report prompted dollar strength and euro tumbled to an intra-day low at 1.0856 in New York morning. Later, price pared its losses and rallied to session high at 1.0979 at New York midday before stabilizing.
Versus the Japanese yen, although the greenback traded with a firm bias in Asia and gained to 124.86 at European open, price fell briefly but sharply to 124.32 just ahead of U.S. jobs report release. Dollar, then rallied to intra-day high at 125.07 before surrendering its gains and tumbling to session low at 124.11 in New York morning.
The British pound remained under pressure in Asia after Thursday's selloff and weakened to 1.5488 in early European morning. Despite a brief rise to session high at 1.5547 at New York open, price tumbled to intra-day low at 1.5424 in New York morning on dollar's strength before rebounding to 1.5495.
In other news, SNB's Fritz Zurbruegg said 'weakening of franc in recent weeks goes in right direction; franc still strongly overvalued; negative swiss interest rates showing an impact; unclear where lower border for negative rates lies; SNB to keep negative rates as long as needed.'
On the data front, Germany exports and imports came in weaker-than-expected at -1.0% and -0.5% vs forecasts of -0.4% and 0.5% respectively.
Data to be released this week:
Japan current account, trade balance, BoJ economic survey, consumer confidence and EU sentix index on Monday.
UK BRC retail sales; Australia NAB business conditions, business confidence, Japan machine tool orders, Italy CPI, EU economic sentiment, Germany current conditions, economic sentiment, Canada housing starts, U.S. unit labor costs, redbook retail sales, wholesale inventories and wholesale sales on Tuesday.
Japan CGPI, machinery orders, industrial output, capacity utilisation, Australia WPI, consumer sentiment, China industrial output, retail sales, France current account, Italy trade balance, UK ILO unemployment rate, claimant count, average earnings, EU industrial production and U.S. Fed budget on Wednesday.
New Zealand manufacturing PMI, Japan machinery orders, Germany CPI, HICP, France CPI, Swiss PPI, Canada new housing price, U.S. export prices, import prices, retail sales and business inventories on Thursday.
New Zealand retail sales, France GDP, Germany GDP, Italy GDP, EU GDP, inflation, Canada manufacturing sales, U.S. capacity utilisation and industrial output on Friday.
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