Market Review - 22/07/2014 21:07GMT
Euro falls to a fresh 8-month low on expectation of widening interest rate differential between U.S. and eurozone
The single currency tumbled to a fresh 8-month low of 1.3459 versus the U.S. dollar on expectation of widening interest rate differential between U.S. and eurozone after the release of U.S. inflation data. The annual increase in U.S. consumer prices was unchanged and market players expected the Federal Reserve to raise interest rates next year, however, the European Central Bank is widely expected to provide more stimulus to aid the fragile eurozone economy.
The greenback rebounded against the Japanese yen to 101.60 and then retreated briefly to 101.33 after the release of U.S. CPI data before rebounding in New York afternoon. The British pound fell from 1.7083 to 1.7042 due to dollar's broad-based strength.
EU foreign ministers in Brussels were debating how to deliver on the bloc's commitment to expand a 72-person blacklist. U.K. Foreign Secretary Philip Hammond said an arms embargo may be considered against Russia, which Ukraine said had massed as many as 41,000 troops on its border. Market players are reluctant to add bets due to the ongoing violence in Ukraine and the Middle East.
White house spokesman said U.S. will continue to review sanctions on Russia and is willing to consider additional costs; U.S. would welcome additional steps to impose on Russia, particularly from Europe.
Wednesday will see the release of Australia CPI, France business climate, UK BoE minutes, BBA mortgage approvals, Italy trade balance, Canada retail sales and EU consumer confidence.
Euro falls to a fresh 8-month low on expectation of widening interest rate differential between U.S. and eurozone
The single currency tumbled to a fresh 8-month low of 1.3459 versus the U.S. dollar on expectation of widening interest rate differential between U.S. and eurozone after the release of U.S. inflation data. The annual increase in U.S. consumer prices was unchanged and market players expected the Federal Reserve to raise interest rates next year, however, the European Central Bank is widely expected to provide more stimulus to aid the fragile eurozone economy.
The greenback rebounded against the Japanese yen to 101.60 and then retreated briefly to 101.33 after the release of U.S. CPI data before rebounding in New York afternoon. The British pound fell from 1.7083 to 1.7042 due to dollar's broad-based strength.
EU foreign ministers in Brussels were debating how to deliver on the bloc's commitment to expand a 72-person blacklist. U.K. Foreign Secretary Philip Hammond said an arms embargo may be considered against Russia, which Ukraine said had massed as many as 41,000 troops on its border. Market players are reluctant to add bets due to the ongoing violence in Ukraine and the Middle East.
White house spokesman said U.S. will continue to review sanctions on Russia and is willing to consider additional costs; U.S. would welcome additional steps to impose on Russia, particularly from Europe.
Wednesday will see the release of Australia CPI, France business climate, UK BoE minutes, BBA mortgage approvals, Italy trade balance, Canada retail sales and EU consumer confidence.
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