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 nears 1.0800 on broad US Dollar weakness
Optimism continues to undermine demand for the American currency ahead of the weekly close. EUR/USD hovers around weekly highs just ahead of the 1.0900 figure.
GBP/USD reconquers 1.2500 with upbeat UK GDP
Following BOE-inspired slump on Thursday, the British Pound changed course and trades around 1.2530. Better-than-anticipated UK GDP and a weaker USD behind the advance.
Gold resumes advance and trades above $2,370
XAU/USD accelerated its recovery on Friday, as investors drop the USD. Dismal US employment-related figures revived hopes for a soon-to-come rate cut from the Fed.
XRP tests support at $0.50 as Ripple joins alliance to work on blockchain recovery
XRP trades around $0.5174 early on Friday, wiping out gains from earlier in the week, as Ripple announced it has joined an alliance to support digital asset recovery alongside Hedera and the Algorand Foundation.
Week ahead – US inflation numbers to shake Fed rate cut bets
Fed rate-cut speculators rest hopes on US inflation data. After dovish BoE, pound traders turn to UK job numbers. Will a strong labor market convince the RBA to hike? More Chinese data on tap amid signs of slow Q2 start.