Market Review - 28/08/2014 22:46GMT
Dollar rises on renewed tensions in Ukraine and upbeat U.S. GDP data
Although euro rose briefly to 1.3221 in early European morning on Thursday, renewed selling emerged after data showed EZ economic sentiment dropped in August and price retreated to 1.3199. Euro later tumbled to 1.3160 due to renewed tensions in Ukraine together with upbeat second reading of U.S. GDP.
Eurozone economic sentiment and industrial sentiment were reported weaker-than-expected at 100.6 n -5.3 versus forecasts of 101.5 and -4.5 respectively. German unemployment rate remained unchanged at 6.7% whilst unemployment change came in weaker-than-expected at 1K versus forecast of -5K.
U.S. GDP and GDP deflator came in better-than-expected at 4.2% and 2.2% versus forecasts of 3.9% and 2.0% respectively.
Ukraine's security and defence council said 'town of Novoazovsk has fallen under control of Russian military; Russian forces and separatists are continuing a counter-offensive in south-eastern regions of Ukraine.' Eastern Ukraine rebel leader said 'about 3,000 volunteers from Russia serving in rebel ranks; rebels can defeat Ukrainian military without the help of Russian state.'
Ukraine's Poroshenko said 'Russian military invasion has taken place in Ukraine; calls urgent meeting of country's security n defence council to decide next stops in crisis.' However, Ukraine Presidential website later clarified that Poroshenko said Russian troops have been brought into Ukraine not what has been reported earlier as "Russian invasion has taken place".
The British pound also tracked euro's movement on Thursday. Despite cable's brief rise above Wednesday's NY high at 1.6606 to 1.6615 in European morning, selling interest emerged on dollar's broad-based strength due to renewed tensions in Ukraine. Cable fell to an intra-day low at 1.6567 in Europe and then rebounded to 1.6599 before trading sideways in New York.
Friday will see the release of Japan's unemployment rate, CPI, industrial output and retail sales, New Zealand's business outlook, Australia's housing credit and private sector credit, Japan's housing starts and construction orders, Swiss KOF indicator, Italy's unemployment rate, eurozone inflation and unemployment rate, U.S. PCE, personal consumption and income, Canada's GDP, producer prices and raw material prices, U.S. Chicago PMI, University of Michigan condition and expectations.
Dollar rises on renewed tensions in Ukraine and upbeat U.S. GDP data
Although euro rose briefly to 1.3221 in early European morning on Thursday, renewed selling emerged after data showed EZ economic sentiment dropped in August and price retreated to 1.3199. Euro later tumbled to 1.3160 due to renewed tensions in Ukraine together with upbeat second reading of U.S. GDP.
Eurozone economic sentiment and industrial sentiment were reported weaker-than-expected at 100.6 n -5.3 versus forecasts of 101.5 and -4.5 respectively. German unemployment rate remained unchanged at 6.7% whilst unemployment change came in weaker-than-expected at 1K versus forecast of -5K.
U.S. GDP and GDP deflator came in better-than-expected at 4.2% and 2.2% versus forecasts of 3.9% and 2.0% respectively.
Ukraine's security and defence council said 'town of Novoazovsk has fallen under control of Russian military; Russian forces and separatists are continuing a counter-offensive in south-eastern regions of Ukraine.' Eastern Ukraine rebel leader said 'about 3,000 volunteers from Russia serving in rebel ranks; rebels can defeat Ukrainian military without the help of Russian state.'
Ukraine's Poroshenko said 'Russian military invasion has taken place in Ukraine; calls urgent meeting of country's security n defence council to decide next stops in crisis.' However, Ukraine Presidential website later clarified that Poroshenko said Russian troops have been brought into Ukraine not what has been reported earlier as "Russian invasion has taken place".
The British pound also tracked euro's movement on Thursday. Despite cable's brief rise above Wednesday's NY high at 1.6606 to 1.6615 in European morning, selling interest emerged on dollar's broad-based strength due to renewed tensions in Ukraine. Cable fell to an intra-day low at 1.6567 in Europe and then rebounded to 1.6599 before trading sideways in New York.
Friday will see the release of Japan's unemployment rate, CPI, industrial output and retail sales, New Zealand's business outlook, Australia's housing credit and private sector credit, Japan's housing starts and construction orders, Swiss KOF indicator, Italy's unemployment rate, eurozone inflation and unemployment rate, U.S. PCE, personal consumption and income, Canada's GDP, producer prices and raw material prices, U.S. Chicago PMI, University of Michigan condition and expectations.
Recommended Content
Editors’ Picks
EUR/USD fluctuates in daily range above 1.0600
EUR/USD struggles to gather directional momentum and continues to fluctuate above 1.0600 on Tuesday. The modest improvement seen in risk mood limits the US Dollar's gains as investors await Fed Chairman Jerome Powell's speech.
GBP/USD stabilizes near 1.2450 ahead of Powell speech
GBP/USD holds steady at around 1.2450 after recovering from the multi-month low it touched near 1.2400 in the European morning. The USD struggles to gather strength after disappointing housing data. Market focus shifts to Fed Chairman Powell's appearance.
Gold retreats to $2,370 as US yields push higher
Gold stages a correction on Tuesday and fluctuates in negative territory near $2,370 following Monday's upsurge. The benchmark 10-year US Treasury bond yield continues to push higher above 4.6% and makes it difficult for XAU/USD to gain traction.
XRP struggles below $0.50 resistance as SEC vs. Ripple lawsuit likely to enter final pretrial conference
XRP is struggling with resistance at $0.50 as Ripple and the US Securities and Exchange Commission (SEC) are gearing up for the final pretrial conference on Tuesday at a New York court.
US outperformance continues
The economic divergence between the US and the rest of the world has become increasingly pronounced. The latest US inflation prints highlight that underlying inflation pressures seemingly remain stickier than in most other parts of the world.