Market Review - 21/08/2014 23:04GMT
Dollar retreats on profit-taking ahead of Friday's Fed Chair Yellen speech in Jackson Hole
U.S. dollar initially extended this week's rise initially against major currencies in Asia on Thursday, however, the greenback rebounded as investors took profit ahead of Friday's Fed Chair Yellen speech at the annual economic symposium of the Federal Reserve Bank of Kansas City held in Jackson Hole,Wyoming. Euro fell to a fresh near 1-year low at 1.3242 versus U.S. dollar in Asia before rebounding to 1.3288/90 on improved risk appetite in New York.
The greenback strengthened to a fresh 4-1/2 month peak at 103.96 in Asia before retreating to 103.60 in New York. Britain's FTSE-100, Germany's DAX and France's CAC-40 closed up 0.3%, 0.9% n 1.2% respectively. Dow Jones index currently rose by 79 points to 17058 near New York close.
On the data front, France manufacturing PMI came in weaker-than-expected at 46.5 versus forecast of 47.8 whilst services PMI came in better-than-expected at 51.1 versus forecast of 50.0. Germany services and manufacturing PMIs came in better-than-expected at 56.4 n 52.0 versus forecasts of 55.7 and 51.8 respectively.
The British pound fell to a fresh 4-month low of 1.6564 in Asia on Thursday, however, short-covering lifted price to 1.6598 in European morning before retreating briefly after the release of downbeat U.K. retail sales data which came in at 0.1% m/m and 2.6% y/y versus forecasts of 0.4% m/m and 3.0% y/y respectively. However, cable rebounded again and rose to 1.6602 before trading sideways in New York.
In other news, Fed's Williams said 'argument for earlier rate hike wud be bolstered by really good economic improvement, inflation moves back twd objective; rate hike in middle of 2015 seems reasonable; expects inflation will only gradually come back; still no convincing signs of higher wage growth.'
Friday will see the release of Canada's CPI and retail sales. Investors are reluctant to add bets ahead of a keynote speech at 14:00GMT by Fed Chair Janet Yellen who may provide her take on the latest data on labor markets at the Kansas City Fed's annual symposium in Jackson Hole, Wyoming.
Dollar retreats on profit-taking ahead of Friday's Fed Chair Yellen speech in Jackson Hole
U.S. dollar initially extended this week's rise initially against major currencies in Asia on Thursday, however, the greenback rebounded as investors took profit ahead of Friday's Fed Chair Yellen speech at the annual economic symposium of the Federal Reserve Bank of Kansas City held in Jackson Hole,Wyoming. Euro fell to a fresh near 1-year low at 1.3242 versus U.S. dollar in Asia before rebounding to 1.3288/90 on improved risk appetite in New York.
The greenback strengthened to a fresh 4-1/2 month peak at 103.96 in Asia before retreating to 103.60 in New York. Britain's FTSE-100, Germany's DAX and France's CAC-40 closed up 0.3%, 0.9% n 1.2% respectively. Dow Jones index currently rose by 79 points to 17058 near New York close.
On the data front, France manufacturing PMI came in weaker-than-expected at 46.5 versus forecast of 47.8 whilst services PMI came in better-than-expected at 51.1 versus forecast of 50.0. Germany services and manufacturing PMIs came in better-than-expected at 56.4 n 52.0 versus forecasts of 55.7 and 51.8 respectively.
The British pound fell to a fresh 4-month low of 1.6564 in Asia on Thursday, however, short-covering lifted price to 1.6598 in European morning before retreating briefly after the release of downbeat U.K. retail sales data which came in at 0.1% m/m and 2.6% y/y versus forecasts of 0.4% m/m and 3.0% y/y respectively. However, cable rebounded again and rose to 1.6602 before trading sideways in New York.
In other news, Fed's Williams said 'argument for earlier rate hike wud be bolstered by really good economic improvement, inflation moves back twd objective; rate hike in middle of 2015 seems reasonable; expects inflation will only gradually come back; still no convincing signs of higher wage growth.'
Friday will see the release of Canada's CPI and retail sales. Investors are reluctant to add bets ahead of a keynote speech at 14:00GMT by Fed Chair Janet Yellen who may provide her take on the latest data on labor markets at the Kansas City Fed's annual symposium in Jackson Hole, Wyoming.
Recommended Content
Editors’ Picks
EUR/USD falls back toward 1.1150 as US Dollar rebounds
EUR/USD is falling back toward 1.1150 in European trading on Friday, reversing early gains. Risk sentiment sours and lifts the haven demand for the US Dollar, fuelling a pullback in the pair. The focus now remains on the Fedspeak for fresh directives.
GBP/USD struggles near 1.3300 amid renewed US Dollar demand
GBP/USD is paring back gains to trade near 1.3300 in the European session. The data from the UK showed that Retail Sales rose at a stronger pace than expected in August, briefly supporting Pound Sterling but the US Dollar comeback checks the pair's upside. Fedspeak eyed.
Gold hits new highs on expectations of global cuts to interest rates
Gold (XAU/USD) breaks to a new record high near $2,610 on Friday on heightened expectations that global central banks will follow the Federal Reserve (Fed) in easing policy and slashing interest rates.
Pepe price forecast: Eyes for 30% rally
Pepe’s price broke and closed above the descending trendline on Thursday, eyeing for a rally. On-chain data hints at a bullish move as PEPE’s dormant wallets are active, and the long-to-short ratio is above one.
Bank of Japan set to keep rates on hold after July’s hike shocked markets
The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.