Market Review - 11/07/2014 18:32GMT
Euro weakens on continued concern over Portugal banking sector
The single currency weakened against the greenback on Friday as fears that stress in Portugal's banking sector could spread within the euro area triggered risk aversion.
Although the single currency traded sideways in Asia n briefly rose to session high at 1.3625 in European morning, price swiftly pared its gains and dropped to an intra-day low at 1.3593 in New York morning as investors still remained skeptic about Portugal's Banco Espitiro Santo's financial health.
The British pound also traded sideways in Asia and rose to session high at 1.7151 in European morning in tandem with euro. However, renewed selling there pressured the pair lower and cable dropped to an intra-day low at 1.7099 in New York morning on risk aversion before staging a recovery to 1.7120 in New York afternoon.
Versus the Japanese yen, the greenback spent the day trading sideways inside a narrow range of 101.39-101.22 as market focus remained on other dollar majors.
In other news, Fed's Evans said 'not a catastrophe to overshoot 2% inflation target; eyes 2.4% as reasonable; expects 1.5-1.75% inflation over next couple of years; U.S. labor mkt doing a lot better recently.'
On the data front, Germany CPI final m/m and y/y came in as expected at 0.3% and 1.0% respectively. U.S. Fed budget was reported at 71.0B vs forecast of 80.0B.
Data to be released next week:
Japan capacity utilization, industrial output and EU industrial production on Monday.
Australia RBA minutes, Japan BoJ rate decision, Swiss PPI, UK BRC retail sales, CPI, PPI, PPI input, PPI output, RPI, core RPI, Italy CPI, Germany ZEW current conditions, economic sentiment, U.S. retail sales, export prices, import prices, Redbook retail sales and business inventories on Tuesday.
New Zealand CPI, China GDP, retail sales, industrial output, Italy trade balance, UK ILO unemployment, claimant count, Swiss ZEW sentiment, U.S. PPI, core PPI, net L-T flows, capacity utilization, industrial output, NAHB housing market index, Fed beige book and Canada BoC rate decision on Wednesday.
Australia NAB business confidence, EU CPI, U.S. building permits, housing starts and jobless claims on Thursday.
EU current account, Canada CPI, core CPI and U.S. U. of Michigan consumer sentiment on Friday.
Euro weakens on continued concern over Portugal banking sector
The single currency weakened against the greenback on Friday as fears that stress in Portugal's banking sector could spread within the euro area triggered risk aversion.
Although the single currency traded sideways in Asia n briefly rose to session high at 1.3625 in European morning, price swiftly pared its gains and dropped to an intra-day low at 1.3593 in New York morning as investors still remained skeptic about Portugal's Banco Espitiro Santo's financial health.
The British pound also traded sideways in Asia and rose to session high at 1.7151 in European morning in tandem with euro. However, renewed selling there pressured the pair lower and cable dropped to an intra-day low at 1.7099 in New York morning on risk aversion before staging a recovery to 1.7120 in New York afternoon.
Versus the Japanese yen, the greenback spent the day trading sideways inside a narrow range of 101.39-101.22 as market focus remained on other dollar majors.
In other news, Fed's Evans said 'not a catastrophe to overshoot 2% inflation target; eyes 2.4% as reasonable; expects 1.5-1.75% inflation over next couple of years; U.S. labor mkt doing a lot better recently.'
On the data front, Germany CPI final m/m and y/y came in as expected at 0.3% and 1.0% respectively. U.S. Fed budget was reported at 71.0B vs forecast of 80.0B.
Data to be released next week:
Japan capacity utilization, industrial output and EU industrial production on Monday.
Australia RBA minutes, Japan BoJ rate decision, Swiss PPI, UK BRC retail sales, CPI, PPI, PPI input, PPI output, RPI, core RPI, Italy CPI, Germany ZEW current conditions, economic sentiment, U.S. retail sales, export prices, import prices, Redbook retail sales and business inventories on Tuesday.
New Zealand CPI, China GDP, retail sales, industrial output, Italy trade balance, UK ILO unemployment, claimant count, Swiss ZEW sentiment, U.S. PPI, core PPI, net L-T flows, capacity utilization, industrial output, NAHB housing market index, Fed beige book and Canada BoC rate decision on Wednesday.
Australia NAB business confidence, EU CPI, U.S. building permits, housing starts and jobless claims on Thursday.
EU current account, Canada CPI, core CPI and U.S. U. of Michigan consumer sentiment on Friday.
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