Market Review - 26/11/2014 23:12GMT
U.S. dollar falls broadly after weak economic data
The single currency rallied to as high as 1.2532 on dollar's broad-based weakness after release of a slew of weak U.S. economic data, including higher-than-expected jobless claims, weaker-than-expected Chicago PMI and University of Michigan sentiment, less than expected new home sales data.
U.S. jobless claims which came in at 313,000 versus economists' forecast of 288,000. Chicago PMI came in weaker-than-expected at 60.8 versus economists' expectation of 63.0. University of Michigan in November was 88.8 against the forecast of 90.0. U.S. new home sales was 0.458 million units in October versus economists' forecast of 0.472 million units.
Despite euro's brief drop to 1.2444 after dovish comments from ECB Vice President Vitor Constancio who said "the European Central Bank will be able to gauge in the first quarter of next year whether it needs to start buying sovereign bonds to stimulate the euro zone economy."
ECB Governing Council member Bostjan Jazbec said the European Central Bank's monetary policy alone cannot solve the euro zone's problems on its own and it needs to be complemented by other policies such as investment.
The greenback ratcheted lower against the Japanese yen on Wednesday. The pair met renewed selling at 118.00 in Australian morning and fell to an intra-day low of 117.45 after the U.S. data.
Earlier in the day, BoJ board member Sayuri Shirai said 'BoJ deployed maximum scale of easing it can deliver on Oct. 31, now need to scrutinise data for time being; weak Q3 GDP data made me convinced BoJ eased at most appropriate timing on Oct. 31.' BoE's Haldane said 'bank rate in future might stick at 3%.'
Cable found renewed buying at 1.5680 and jumped to as high as 1.5807 on Wednesday due to dollar's broad-based weakness after the release of weaker-than-expected U.S. economic data. BoE's Haldane said 'bank rate in future might stick at 3%.'
Thursday will see the release of New Zealand's trade balance, Australia's HIA new home sales, Swiss GDP, U.K. Nationwide house prices, German unemployment rate, EU business climate, consumer confidence, economic sentiment, Germn Gfk consumer sentiment, HICP and CPI.
U.S. dollar falls broadly after weak economic data
The single currency rallied to as high as 1.2532 on dollar's broad-based weakness after release of a slew of weak U.S. economic data, including higher-than-expected jobless claims, weaker-than-expected Chicago PMI and University of Michigan sentiment, less than expected new home sales data.
U.S. jobless claims which came in at 313,000 versus economists' forecast of 288,000. Chicago PMI came in weaker-than-expected at 60.8 versus economists' expectation of 63.0. University of Michigan in November was 88.8 against the forecast of 90.0. U.S. new home sales was 0.458 million units in October versus economists' forecast of 0.472 million units.
Despite euro's brief drop to 1.2444 after dovish comments from ECB Vice President Vitor Constancio who said "the European Central Bank will be able to gauge in the first quarter of next year whether it needs to start buying sovereign bonds to stimulate the euro zone economy."
ECB Governing Council member Bostjan Jazbec said the European Central Bank's monetary policy alone cannot solve the euro zone's problems on its own and it needs to be complemented by other policies such as investment.
The greenback ratcheted lower against the Japanese yen on Wednesday. The pair met renewed selling at 118.00 in Australian morning and fell to an intra-day low of 117.45 after the U.S. data.
Earlier in the day, BoJ board member Sayuri Shirai said 'BoJ deployed maximum scale of easing it can deliver on Oct. 31, now need to scrutinise data for time being; weak Q3 GDP data made me convinced BoJ eased at most appropriate timing on Oct. 31.' BoE's Haldane said 'bank rate in future might stick at 3%.'
Cable found renewed buying at 1.5680 and jumped to as high as 1.5807 on Wednesday due to dollar's broad-based weakness after the release of weaker-than-expected U.S. economic data. BoE's Haldane said 'bank rate in future might stick at 3%.'
Thursday will see the release of New Zealand's trade balance, Australia's HIA new home sales, Swiss GDP, U.K. Nationwide house prices, German unemployment rate, EU business climate, consumer confidence, economic sentiment, Germn Gfk consumer sentiment, HICP and CPI.
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