Market Review - 19/02/2013 22:28 All times in GMT
Euro rebounds on improved risk appetite
The single currency advanced in New York morning due to the rally in European equities as early release of upbeat German Zew economic sentiment index showed the European economy is recovering from the bottom.
Earlier in Asia, euro edged higher from Asian low at 1.3339 to 1.3360 before retreating to 1.3334 in European morning. Despite a brief but strong bounce to 1.3374 after the release of stronger-than-expected German Zew economic sentiment index (48.2 versus the forecast of 35.0), price swiftly dropped to 1.3329 before climbing to session highs of 1.3396 in New York afternoon on risk appetite due to the rally in European equities.
FTSE-100, CAC-40 and DAX were up by 0.96%, 1.88% and 1.62% respectively.
Versus the Japanese yen, the greenback fell initially to 93.68 in Australia due to the yen-supportive comments from Japan Finance Minister Taro Aso, the pair staged a recovery to 93.92/93 in Asia but active cross buying of yen versus euro pressured price to 93.36 in Europe. Later, dollar's broad-based weakness sent the pair further lower to 93.30 in New York afternoon.
Japan Finance Minister Taro Aso said the government has no intention of buying foreign bonds through a public-private fund. When asked if such a fund is planned, he told reporters in Tokyo 'We don't intend to buy foreign bonds.' He also said that the government is not considering any immediate change to the law governing the Bank of Japan.
Although cable rose fm Asian low at 1.5461 to 1.5505 in European morning, the pound fell in tandem with euro to 1.5453 in New York morning, later, active cross buying in euro versus sterling pressured the pound sharply lower and cable fell below Monday's low at 1.5438 to a fresh 7-month low at 1.5414 at U.S. midday before stabilising.
In other news, the Bank of Japan released its January meeting minutes which stated that 'a few members said buying JGBs with 5 years until maturity under asset buying programme could be an option; a few members said more time was needed to discuss how government, BOJ should coordinate on policies; government representative said BOJ held accountable to explain its monetary policies at government's econ council regularly; Sato, Kiuchi said target 2% CPI would not heighten public price expectations that much.'
Data to be released on Wednesday :
Westpac leading economic index; Japan Export, Import, Trade balance (jpy), All industry index, Germany CPI final, HICP final, PPI, France business climate, CPI, CPI, Italy industrial orders, EU Consumer confidence, U.K. Claimant count, ILO unemployment rate, Avg. earnings, Swiss ZEW index, U.S. Housing starts, Building permits, PPI, PPI core, Redbook retail sales on Wednesday.
Euro rebounds on improved risk appetite
The single currency advanced in New York morning due to the rally in European equities as early release of upbeat German Zew economic sentiment index showed the European economy is recovering from the bottom.
Earlier in Asia, euro edged higher from Asian low at 1.3339 to 1.3360 before retreating to 1.3334 in European morning. Despite a brief but strong bounce to 1.3374 after the release of stronger-than-expected German Zew economic sentiment index (48.2 versus the forecast of 35.0), price swiftly dropped to 1.3329 before climbing to session highs of 1.3396 in New York afternoon on risk appetite due to the rally in European equities.
FTSE-100, CAC-40 and DAX were up by 0.96%, 1.88% and 1.62% respectively.
Versus the Japanese yen, the greenback fell initially to 93.68 in Australia due to the yen-supportive comments from Japan Finance Minister Taro Aso, the pair staged a recovery to 93.92/93 in Asia but active cross buying of yen versus euro pressured price to 93.36 in Europe. Later, dollar's broad-based weakness sent the pair further lower to 93.30 in New York afternoon.
Japan Finance Minister Taro Aso said the government has no intention of buying foreign bonds through a public-private fund. When asked if such a fund is planned, he told reporters in Tokyo 'We don't intend to buy foreign bonds.' He also said that the government is not considering any immediate change to the law governing the Bank of Japan.
Although cable rose fm Asian low at 1.5461 to 1.5505 in European morning, the pound fell in tandem with euro to 1.5453 in New York morning, later, active cross buying in euro versus sterling pressured the pound sharply lower and cable fell below Monday's low at 1.5438 to a fresh 7-month low at 1.5414 at U.S. midday before stabilising.
In other news, the Bank of Japan released its January meeting minutes which stated that 'a few members said buying JGBs with 5 years until maturity under asset buying programme could be an option; a few members said more time was needed to discuss how government, BOJ should coordinate on policies; government representative said BOJ held accountable to explain its monetary policies at government's econ council regularly; Sato, Kiuchi said target 2% CPI would not heighten public price expectations that much.'
Data to be released on Wednesday :
Westpac leading economic index; Japan Export, Import, Trade balance (jpy), All industry index, Germany CPI final, HICP final, PPI, France business climate, CPI, CPI, Italy industrial orders, EU Consumer confidence, U.K. Claimant count, ILO unemployment rate, Avg. earnings, Swiss ZEW index, U.S. Housing starts, Building permits, PPI, PPI core, Redbook retail sales on Wednesday.
Recommended Content
Editors’ Picks
AUD/USD tumbles toward 0.6350 as Middle East war fears mount
AUD/USD has come under intense selling pressure and slides toward 0.6350, as risk-aversion intensifies following the news that Israel retaliated with missile strikes on a site in Iran. Fears of the Israel-Iran strife translating into a wider regional conflict are weighing on the higher-yielding Aussie Dollar.
USD/JPY breaches 154.00 as sell-off intensifies on Israel-Iran escalation
USD/JPY is trading below 154.00 after falling hard on confirmation of reports of an Israeli missile strike on Iran, implying that an open conflict is underway and could only spread into a wider Middle East war. Safe-haven Japanese Yen jumped, helped by BoJ Governor Ueda's comments.
Gold price jumps above $2,400 as MidEast escalation sparks flight to safety
Gold price has caught a fresh bid wave, jumping beyond $2,400 after Israel's retaliatory strikes on Iran sparked a global flight to safety mode and rushed flows into the ultimate safe-haven Gold. Risk assets are taking a big hit, as risk-aversion creeps into Asian trading on Friday.
WTI surges to $85.00 amid Israel-Iran tensions
Western Texas Intermediate, the US crude oil benchmark, is trading around $85.00 on Friday. The black gold gains traction on the day amid the escalating tension between Israel and Iran after a US official confirmed that Israeli missiles had hit a site in Iran.
Dogwifhat price pumps 5% ahead of possible Coinbase effect
Dogwifhat price recorded an uptick on Thursday, going as far as to outperform its peers in the meme coins space. Second only to Bonk Inu, WIF token’s show of strength was not just influenced by Bitcoin price reclaiming above $63,000.