Market Review - 25/09/2014 22:32GMT
U.S. dollar pares initial gains on Thursday due to sell off in global stock markets
The single currency tumbled in early European trading on Thursday. Euro easily penetrated 2013 bottom at 1.2745 and tanked to a fresh 1-1/2 year trough of 1.2696, however, short-covering lifted the pair and euro rebounded to 1.2765 after the release of weaker-than-expected U.S. services PMI which came in at 58.5 versus forecast of 59.0 together with the sell off in U.S. stock markets.
The greenback rose briefly to 109.37 on Thursday and then nose-dived to 108.51 in New York morning due to the sharp sell off in U.S. stock markets. Dow Jones index closed down by 264 to 16945 after hawkish comments from Federal officials. The yen strengthened broadly in NY morning on Bloomberg report citing source from Japanese newspaper Yomiuri Japan's health minister Yasuhisa Shiozaki said there is no rush to push through the timing of a bill to reform the Government Pension Investment Fund (GFIP), the news sent the Nikkei futures tumbling 170 points in New York session after spot Nikkei climbed 206 points earlier during the day to a near 7-year high of 16374.
Fed's Fisher said 'market assuming Fed to start raising rates between Spring and Summer 2015, I would say sooner rather than later; Draghi is still defining ECB's mandate.' Atlanta Federal Reserve President Dennis Lockhart said that the Fed's main policy statement will almost certainly shift in October as its bond-buying program winds down. Lockhart said the U.S. economy is still hampered by weak demand at home and internationally, potentially pushing the need to raise interest rates later into next year.
The British pound briefly penetrated last Fri's low at 1.6284 to 1.6276 in European morning on Thur, however, short-covering lifted the pair rebounded to 1.6342 in New York morning after hawkish comments from BOE's Carney regarding the possibility of rate hikes getting closer.
BoE Governor Mark Carney said 'point at which interest rates start to rise is getting closer; no pre-set course for rates, timing depends on data; judgement about when to raise rates has become more finely balanced in recent months; rate rises likely to be limited and gradual due to weak export demand, high public private-sector debt; top insurance officials, actuaries to face new vetting regime.'
Friday will see the release of Japan's CPI Germany's Gfk consumer sentiment, France's consumer confidence, U.S. core PCE, GDP in Q2 and University of Michigan sentiment.
U.S. dollar pares initial gains on Thursday due to sell off in global stock markets
The single currency tumbled in early European trading on Thursday. Euro easily penetrated 2013 bottom at 1.2745 and tanked to a fresh 1-1/2 year trough of 1.2696, however, short-covering lifted the pair and euro rebounded to 1.2765 after the release of weaker-than-expected U.S. services PMI which came in at 58.5 versus forecast of 59.0 together with the sell off in U.S. stock markets.
The greenback rose briefly to 109.37 on Thursday and then nose-dived to 108.51 in New York morning due to the sharp sell off in U.S. stock markets. Dow Jones index closed down by 264 to 16945 after hawkish comments from Federal officials. The yen strengthened broadly in NY morning on Bloomberg report citing source from Japanese newspaper Yomiuri Japan's health minister Yasuhisa Shiozaki said there is no rush to push through the timing of a bill to reform the Government Pension Investment Fund (GFIP), the news sent the Nikkei futures tumbling 170 points in New York session after spot Nikkei climbed 206 points earlier during the day to a near 7-year high of 16374.
Fed's Fisher said 'market assuming Fed to start raising rates between Spring and Summer 2015, I would say sooner rather than later; Draghi is still defining ECB's mandate.' Atlanta Federal Reserve President Dennis Lockhart said that the Fed's main policy statement will almost certainly shift in October as its bond-buying program winds down. Lockhart said the U.S. economy is still hampered by weak demand at home and internationally, potentially pushing the need to raise interest rates later into next year.
The British pound briefly penetrated last Fri's low at 1.6284 to 1.6276 in European morning on Thur, however, short-covering lifted the pair rebounded to 1.6342 in New York morning after hawkish comments from BOE's Carney regarding the possibility of rate hikes getting closer.
BoE Governor Mark Carney said 'point at which interest rates start to rise is getting closer; no pre-set course for rates, timing depends on data; judgement about when to raise rates has become more finely balanced in recent months; rate rises likely to be limited and gradual due to weak export demand, high public private-sector debt; top insurance officials, actuaries to face new vetting regime.'
Friday will see the release of Japan's CPI Germany's Gfk consumer sentiment, France's consumer confidence, U.S. core PCE, GDP in Q2 and University of Michigan sentiment.
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