Market Review - 24/11/2014 22:41GMT
Euro rebounds on Monday after upbeat IfO business sentiment
Despite opening lower below Friday's New York sup at 1.2375 to 1.2360 at New Zealand open on Monday, short-covering lifted price in Asian session and euro found renewed buying at 1.2373 after German Ifo business climate came in better than market forecast together with comments by ECB Board member Ewald Nowotny. German Ifo business climate, current conditions and expectations came in better-than-expected at 104.7, 110.0 and 99.7 versus forecasts of 103.0, 108.0 and 98.6 respectively.
ECB Board member Ewald Nowotny said in an interview with Bloomberg News that the exchange rate is not a direct policy goal for the ECB. It is relevant for the ECB as long as it is relevant for inflation. ECB's Nowotny said 'there are always circumstances for more policy action, doesn't see timing for this to happen; mid-term inflation expectations still anchored but ECB watching deviation from target; favors steady-hand ECB policy, monitoring impact of steps ECB has already taken.' ECB's Weidmann said 'additional ECB measures to tackle low inflation are more difficult and encounter legal limits.'
Although dollar opened higher at 117.95 (Reuters) in New Zealand on Mon due to weakness in eur/usd, renewed broad-based retreat in greenback knocked price down to 117.58 shortly after Asian open, however, dollar rebounded again due to cross selling in jpy versus euro n sterling. The pair later rose to 118.48 in New York morning before retreating.
On the data front, U.S. Services PMI came in slightly weaker-than-expected at 56.3 vs forecast of 56.8.
Despite opening lower to 1.5633 in New Zealand opening on Monday, the British pound found some support and rebounded to 1.5674 at European open, however, price retreated again to 1.5630 before rising to 1.5694 in New York morning. The British pound later rose to an intra-day high of 1.5715.
BoE's David Bailey said 'need to consider if clearing houses should have capital requirements more similar to banks.' Bank of England's Haldane said debt levels and risk aversion will act headwind to UK growth for foreseeable future; low UK government bond yields show "remarkable pattern", may tell us future growth expected to be weak.
Tuesday will see the release of Japan's BoJ meeting minutes, New Zealand's RBNZ inflation expectation, German GDP, U.S. prelimary GDP, PCE prices and Redbook, Canada's retail sales and U.S. monthly home price and consumer confidence.
Euro rebounds on Monday after upbeat IfO business sentiment
Despite opening lower below Friday's New York sup at 1.2375 to 1.2360 at New Zealand open on Monday, short-covering lifted price in Asian session and euro found renewed buying at 1.2373 after German Ifo business climate came in better than market forecast together with comments by ECB Board member Ewald Nowotny. German Ifo business climate, current conditions and expectations came in better-than-expected at 104.7, 110.0 and 99.7 versus forecasts of 103.0, 108.0 and 98.6 respectively.
ECB Board member Ewald Nowotny said in an interview with Bloomberg News that the exchange rate is not a direct policy goal for the ECB. It is relevant for the ECB as long as it is relevant for inflation. ECB's Nowotny said 'there are always circumstances for more policy action, doesn't see timing for this to happen; mid-term inflation expectations still anchored but ECB watching deviation from target; favors steady-hand ECB policy, monitoring impact of steps ECB has already taken.' ECB's Weidmann said 'additional ECB measures to tackle low inflation are more difficult and encounter legal limits.'
Although dollar opened higher at 117.95 (Reuters) in New Zealand on Mon due to weakness in eur/usd, renewed broad-based retreat in greenback knocked price down to 117.58 shortly after Asian open, however, dollar rebounded again due to cross selling in jpy versus euro n sterling. The pair later rose to 118.48 in New York morning before retreating.
On the data front, U.S. Services PMI came in slightly weaker-than-expected at 56.3 vs forecast of 56.8.
Despite opening lower to 1.5633 in New Zealand opening on Monday, the British pound found some support and rebounded to 1.5674 at European open, however, price retreated again to 1.5630 before rising to 1.5694 in New York morning. The British pound later rose to an intra-day high of 1.5715.
BoE's David Bailey said 'need to consider if clearing houses should have capital requirements more similar to banks.' Bank of England's Haldane said debt levels and risk aversion will act headwind to UK growth for foreseeable future; low UK government bond yields show "remarkable pattern", may tell us future growth expected to be weak.
Tuesday will see the release of Japan's BoJ meeting minutes, New Zealand's RBNZ inflation expectation, German GDP, U.S. prelimary GDP, PCE prices and Redbook, Canada's retail sales and U.S. monthly home price and consumer confidence.
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