Market Review - 28/08/2014 22:46GMT
Dollar rises on renewed tensions in Ukraine and upbeat U.S. GDP data
Although euro rose briefly to 1.3221 in early European morning on Thursday, renewed selling emerged after data showed EZ economic sentiment dropped in August and price retreated to 1.3199. Euro later tumbled to 1.3160 due to renewed tensions in Ukraine together with upbeat second reading of U.S. GDP.
Eurozone economic sentiment and industrial sentiment were reported weaker-than-expected at 100.6 n -5.3 versus forecasts of 101.5 and -4.5 respectively. German unemployment rate remained unchanged at 6.7% whilst unemployment change came in weaker-than-expected at 1K versus forecast of -5K.
U.S. GDP and GDP deflator came in better-than-expected at 4.2% and 2.2% versus forecasts of 3.9% and 2.0% respectively.
Ukraine's security and defence council said 'town of Novoazovsk has fallen under control of Russian military; Russian forces and separatists are continuing a counter-offensive in south-eastern regions of Ukraine.' Eastern Ukraine rebel leader said 'about 3,000 volunteers from Russia serving in rebel ranks; rebels can defeat Ukrainian military without the help of Russian state.'
Ukraine's Poroshenko said 'Russian military invasion has taken place in Ukraine; calls urgent meeting of country's security n defence council to decide next stops in crisis.' However, Ukraine Presidential website later clarified that Poroshenko said Russian troops have been brought into Ukraine not what has been reported earlier as "Russian invasion has taken place".
The British pound also tracked euro's movement on Thursday. Despite cable's brief rise above Wednesday's NY high at 1.6606 to 1.6615 in European morning, selling interest emerged on dollar's broad-based strength due to renewed tensions in Ukraine. Cable fell to an intra-day low at 1.6567 in Europe and then rebounded to 1.6599 before trading sideways in New York.
Friday will see the release of Japan's unemployment rate, CPI, industrial output and retail sales, New Zealand's business outlook, Australia's housing credit and private sector credit, Japan's housing starts and construction orders, Swiss KOF indicator, Italy's unemployment rate, eurozone inflation and unemployment rate, U.S. PCE, personal consumption and income, Canada's GDP, producer prices and raw material prices, U.S. Chicago PMI, University of Michigan condition and expectations.
Dollar rises on renewed tensions in Ukraine and upbeat U.S. GDP data
Although euro rose briefly to 1.3221 in early European morning on Thursday, renewed selling emerged after data showed EZ economic sentiment dropped in August and price retreated to 1.3199. Euro later tumbled to 1.3160 due to renewed tensions in Ukraine together with upbeat second reading of U.S. GDP.
Eurozone economic sentiment and industrial sentiment were reported weaker-than-expected at 100.6 n -5.3 versus forecasts of 101.5 and -4.5 respectively. German unemployment rate remained unchanged at 6.7% whilst unemployment change came in weaker-than-expected at 1K versus forecast of -5K.
U.S. GDP and GDP deflator came in better-than-expected at 4.2% and 2.2% versus forecasts of 3.9% and 2.0% respectively.
Ukraine's security and defence council said 'town of Novoazovsk has fallen under control of Russian military; Russian forces and separatists are continuing a counter-offensive in south-eastern regions of Ukraine.' Eastern Ukraine rebel leader said 'about 3,000 volunteers from Russia serving in rebel ranks; rebels can defeat Ukrainian military without the help of Russian state.'
Ukraine's Poroshenko said 'Russian military invasion has taken place in Ukraine; calls urgent meeting of country's security n defence council to decide next stops in crisis.' However, Ukraine Presidential website later clarified that Poroshenko said Russian troops have been brought into Ukraine not what has been reported earlier as "Russian invasion has taken place".
The British pound also tracked euro's movement on Thursday. Despite cable's brief rise above Wednesday's NY high at 1.6606 to 1.6615 in European morning, selling interest emerged on dollar's broad-based strength due to renewed tensions in Ukraine. Cable fell to an intra-day low at 1.6567 in Europe and then rebounded to 1.6599 before trading sideways in New York.
Friday will see the release of Japan's unemployment rate, CPI, industrial output and retail sales, New Zealand's business outlook, Australia's housing credit and private sector credit, Japan's housing starts and construction orders, Swiss KOF indicator, Italy's unemployment rate, eurozone inflation and unemployment rate, U.S. PCE, personal consumption and income, Canada's GDP, producer prices and raw material prices, U.S. Chicago PMI, University of Michigan condition and expectations.
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