Market Review - 10/07/2014 22:51GMT
Euro drops on concers over Portuegese bank's debt default
The single currency fell against the greenback on Thursday after the parent company of Portuguese bank Banco Espirito Santo missed its debt payments and triggered a retreat in European bourses.
Despite trading sideways in Asia, the single currency met renewed selling at 1.3650 European open and tumbled to 1.3602 at New York open on concerns over Portuguese bank together with the release of weak Italian data. Euro continued to remain under pressure n dropped to an intra-day low at 1.3589 in New York morning before stabilizing.
Italian m/m and y/y came in much weaker-than-expected at -1.2% and -1.8% vs forecasts of 0.2% and 1.1% respectively.
Versus the Japanese yen, although the greenback remained under pressure in Asia and dropped to an intra-day low at 101.07 in New York morning on risk-aversion, price pared its losses and recovered to 101.37 in New York afternoon.
Despite rising to session high at 1.7168 in Asian morning, the British pound met renewed selling and fell sharply in tandem with euro to an intra-day low at 1.7105 ahead of New York open as BoE kept its rate unchanged. However, cable found some support there and recovered to 1.7143 in New York afternoon before stabilizing.
BoE left its rate and QE total unchanged at 0.5% n 375 billion sterling respectively.
In other news, Bank of Italy's Visco said 'amount of ECB TLTRO Italian banks can draw on significant, could exceed 200 bln euros; ECB TLTRO programme could boost Italian economy between 0.5% and 1% of GDP by 2016; ECB ready to consider new measures after TLTRO, including acquisitions of assets on large scale.'
On the data front, U.S. jobless claims dropped to 304K fm 315K previously. Japan consumer confidence rose to 41.1 from previous reading of 39.3.
Data to be released on Friday:
Australia new home loans, Germany CPI, HICP, WPI, France current account, Canada employment change, unemployment rate and U.S. Fed budget.
Euro drops on concers over Portuegese bank's debt default
The single currency fell against the greenback on Thursday after the parent company of Portuguese bank Banco Espirito Santo missed its debt payments and triggered a retreat in European bourses.
Despite trading sideways in Asia, the single currency met renewed selling at 1.3650 European open and tumbled to 1.3602 at New York open on concerns over Portuguese bank together with the release of weak Italian data. Euro continued to remain under pressure n dropped to an intra-day low at 1.3589 in New York morning before stabilizing.
Italian m/m and y/y came in much weaker-than-expected at -1.2% and -1.8% vs forecasts of 0.2% and 1.1% respectively.
Versus the Japanese yen, although the greenback remained under pressure in Asia and dropped to an intra-day low at 101.07 in New York morning on risk-aversion, price pared its losses and recovered to 101.37 in New York afternoon.
Despite rising to session high at 1.7168 in Asian morning, the British pound met renewed selling and fell sharply in tandem with euro to an intra-day low at 1.7105 ahead of New York open as BoE kept its rate unchanged. However, cable found some support there and recovered to 1.7143 in New York afternoon before stabilizing.
BoE left its rate and QE total unchanged at 0.5% n 375 billion sterling respectively.
In other news, Bank of Italy's Visco said 'amount of ECB TLTRO Italian banks can draw on significant, could exceed 200 bln euros; ECB TLTRO programme could boost Italian economy between 0.5% and 1% of GDP by 2016; ECB ready to consider new measures after TLTRO, including acquisitions of assets on large scale.'
On the data front, U.S. jobless claims dropped to 304K fm 315K previously. Japan consumer confidence rose to 41.1 from previous reading of 39.3.
Data to be released on Friday:
Australia new home loans, Germany CPI, HICP, WPI, France current account, Canada employment change, unemployment rate and U.S. Fed budget.
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