Market Review - 08/07/2014 22:57GMT
Dollar drops broadly on retreat in U.S. equities
The greenback weakened against majority of its peers on Tuesday on risk aversion due to the selloff in U.S. equities.
Although the single currency remained under pressure in Asia and retreated to session low at 1.3588 in early European morning on the release of weaker-than-expected Germany imports and exports, price pared its intra-day losses and rebounded to 1.3605. Later, euro rose to an intra-day high at 1.3617 in New York morning on dollar's broad-based weakness due to the selloff in U.S. equities.
Germany exports and imports came in at -1.1% and -3.4% vs forecasts of -0.3% and 0.5% respectively.
Versus the Japanese yen, despite a brief retreat to 101.69 at Asian open, the greenback staged a rebound to 101.86 at European open. However, renewed selling there pressured the pair lower and dollar dropped sharply to an intra-day low at 101.49 in New York morning on risk aversion.
The British pound briefly rebounded to session high at 1.7148 in Asian morning before retreating to 1.7126 ahead of European open. Intra-day decline accelerated in European morning and cable dropped sharply to an intra-day low at 1.7085 on the release of weaker-than-expected UK industrial and manufacturing output data. However, price pared its losses and recovered to 1.7134 at New York midday before stabilizing.
UK industrial output m/m and y/y came in at -0.7% and 2.3% vs forecasts of 0.2% and 3.1% respectively. Manufacturing output m/m and y/y were reported at -1.3% and 3.7% vs expectations of 0.4% and 5.6% respectively.
In other news, BoJ's Nakaso said 'Japan's economy has continued to recover moderately as virtuous cycle among production, income, and expenditure has kept growth momentum intact; exports will probably start to pick up gradually if not dramatically as global economy recovers.'
Data to be released on Wednesday:
UK shop price index, Japan machinery orders, Australia Westpac consumer sentiment, China CPI, PPI, Canada housing starts and U.S. FOMC minutes.
Dollar drops broadly on retreat in U.S. equities
The greenback weakened against majority of its peers on Tuesday on risk aversion due to the selloff in U.S. equities.
Although the single currency remained under pressure in Asia and retreated to session low at 1.3588 in early European morning on the release of weaker-than-expected Germany imports and exports, price pared its intra-day losses and rebounded to 1.3605. Later, euro rose to an intra-day high at 1.3617 in New York morning on dollar's broad-based weakness due to the selloff in U.S. equities.
Germany exports and imports came in at -1.1% and -3.4% vs forecasts of -0.3% and 0.5% respectively.
Versus the Japanese yen, despite a brief retreat to 101.69 at Asian open, the greenback staged a rebound to 101.86 at European open. However, renewed selling there pressured the pair lower and dollar dropped sharply to an intra-day low at 101.49 in New York morning on risk aversion.
The British pound briefly rebounded to session high at 1.7148 in Asian morning before retreating to 1.7126 ahead of European open. Intra-day decline accelerated in European morning and cable dropped sharply to an intra-day low at 1.7085 on the release of weaker-than-expected UK industrial and manufacturing output data. However, price pared its losses and recovered to 1.7134 at New York midday before stabilizing.
UK industrial output m/m and y/y came in at -0.7% and 2.3% vs forecasts of 0.2% and 3.1% respectively. Manufacturing output m/m and y/y were reported at -1.3% and 3.7% vs expectations of 0.4% and 5.6% respectively.
In other news, BoJ's Nakaso said 'Japan's economy has continued to recover moderately as virtuous cycle among production, income, and expenditure has kept growth momentum intact; exports will probably start to pick up gradually if not dramatically as global economy recovers.'
Data to be released on Wednesday:
UK shop price index, Japan machinery orders, Australia Westpac consumer sentiment, China CPI, PPI, Canada housing starts and U.S. FOMC minutes.
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