Market Review - 26/08/2014 22:54GMT
Dollar climbs broadly on upbeat U.S. economic data
The greenback rose broadly against major currencies after the release of strong U.S. economic data. U.S. consumer confidence was 92.4 versus the economists' forecast of 89.0. U.S. durable goods came in at a record high at 22.6% versus forecast of 7.5% and previous revised figure of 2.7%. Euro fell to a fresh near 1-year low at 1.3164 on ECB stimulus hopes and strong U.S. economic data whilst dollar rebounded from 103.75 to 104.17 versus the Japanese yen.
Three regional Federal Reserve banks, Philadelphia, Kansas city, Dallas Federal Reserve banks renewed requests to raise discount rate by 25 basis points to 1% ahead of July FOMC meeting, according to minutes on Tuesday. U.S. dollar extended gains against major currencies in late New York on hopes U.S. policymakers will raise interest rates. The benchmark 10-year U.S. Treasury note slipped 1/32 in price to yield 2.39 percent. The 10-year German bund yield was last at 0.946 percent, down from 0.955 percent late Monday.
The British pound fell from 1.6595 to an intra-day low of 1.6540 (just abv Mon's fresh 4-1/2 month low at 1.6535) in late New York due to renewed dollar's strength elsewhere.
Russia's Putin said 'Ukraine crisis cannot be resolved through further escalation of force, or without launching peace dialogue with Ukraine's eastern regions.' Ukrainian military spokesman Lysenko said 'Ukrainian military has destroyed 12 armoured infantry carriers in Novoazovsk area using artillery n aircraft; captured Russian soldiers were not in Ukraine by mistake, they were on a special mission.' Russia's Utair airline says its MI-8 helicopter was shot down in South Sudan, according to preliminary information.
In other news, a U.N. statement said the U.N. Human Right Council will hold an emergency session in Geneva on next Monday on abuses being committed by Islamic State and other militant groups in Iraq.
Wednesday will see the release of Germany's Gfk consumer sentiment, Swiss UBS consumption indicator, France's business climate and Italy's consumer confidence. Investors are waiting for eurozone inflation data on Friday.
Dollar climbs broadly on upbeat U.S. economic data
The greenback rose broadly against major currencies after the release of strong U.S. economic data. U.S. consumer confidence was 92.4 versus the economists' forecast of 89.0. U.S. durable goods came in at a record high at 22.6% versus forecast of 7.5% and previous revised figure of 2.7%. Euro fell to a fresh near 1-year low at 1.3164 on ECB stimulus hopes and strong U.S. economic data whilst dollar rebounded from 103.75 to 104.17 versus the Japanese yen.
Three regional Federal Reserve banks, Philadelphia, Kansas city, Dallas Federal Reserve banks renewed requests to raise discount rate by 25 basis points to 1% ahead of July FOMC meeting, according to minutes on Tuesday. U.S. dollar extended gains against major currencies in late New York on hopes U.S. policymakers will raise interest rates. The benchmark 10-year U.S. Treasury note slipped 1/32 in price to yield 2.39 percent. The 10-year German bund yield was last at 0.946 percent, down from 0.955 percent late Monday.
The British pound fell from 1.6595 to an intra-day low of 1.6540 (just abv Mon's fresh 4-1/2 month low at 1.6535) in late New York due to renewed dollar's strength elsewhere.
Russia's Putin said 'Ukraine crisis cannot be resolved through further escalation of force, or without launching peace dialogue with Ukraine's eastern regions.' Ukrainian military spokesman Lysenko said 'Ukrainian military has destroyed 12 armoured infantry carriers in Novoazovsk area using artillery n aircraft; captured Russian soldiers were not in Ukraine by mistake, they were on a special mission.' Russia's Utair airline says its MI-8 helicopter was shot down in South Sudan, according to preliminary information.
In other news, a U.N. statement said the U.N. Human Right Council will hold an emergency session in Geneva on next Monday on abuses being committed by Islamic State and other militant groups in Iraq.
Wednesday will see the release of Germany's Gfk consumer sentiment, Swiss UBS consumption indicator, France's business climate and Italy's consumer confidence. Investors are waiting for eurozone inflation data on Friday.
Recommended Content
Editors’ Picks
AUD/USD pressures as Fed officials hold firm on rate policy
The Australian Dollar is on the defensive against the US Dollar, as Friday’s Asian session commences. On Thursday, the antipodean clocked losses of 0.21% against its counterpart, driven by Fed officials emphasizing they’re in no rush to ease policy. The AUD/USD trades around 0.6419.
EUR/USD extends its downside below 1.0650 on hawkish Fed remarks
The EUR/USD extends its downside around 1.0640 after retreating from weekly peaks of 1.0690 on Friday during the early Asian session. The hawkish comments from Federal Reserve officials provide some support to the US Dollar.
Gold price edges higher on risk-off mood hawkish Fed signals
Gold prices advanced late in the North American session on Thursday, underpinned by heightened geopolitical risks involving Iran and Israel. Federal Reserve officials delivered hawkish messages, triggering a jump in US Treasury yields, which boosted the Greenback.
Bitcoin Price Outlook: All eyes on BTC as CNN calls halving the ‘World Cup for Bitcoin’
Bitcoin price remains the focus of traders and investors ahead of the halving, which is an important event expected to kick off the next bull market. Amid conflicting forecasts from analysts, an international media site has lauded the halving and what it means for the industry.
Is the Biden administration trying to destroy the Dollar?
Confidence in Western financial markets has already been shaken enough by the 20% devaluation of the dollar over the last few years. But now the European Commission wants to hand Ukraine $300 billion seized from Russia.