Market Review - 02/03/2015 23:28GMT
Euro surrenders intra-day gains ahead of ECB meeting
The single currency pared its initial gains and retreated in New York afternoon as investors awaited the launch of outright QE from the ECB later this week.
Earlier in the day, although euro opened lower and retreated to session low at 1.1160, price gained to 1.1184 ahead of European open. Intra-day ascent accelerated after the release of upbeat manufacturing PMIs from the euro area and price hit an intra-day high at 1.1241 ahead of New York open before retreating on broad-based dollar strength.
Italy and Germany manufacturing PMIs came in better-than-expected at 51.9 n 51.1 vs forecasts of 50.3 n 50.9 respectively.
Versus the Japanese yen, the greenback traded with a firm bias in Asia and gained to 119.97 in European morning before easing off. Dollar found renewed buying at 119.66 and rose to an intra-day high at 120.19 in New York session, helped by the release of upbeat U.S. manufacturing PMI.
U.S. manufacturing PMI rose to 55.1 from 54.3 previously.
Although the British pound remained under pressure in Asia and weakened to 1.5386 in early European morning, price briefly rebounded to 1.5421 after the release of upbeat UK manufacturing PMI. However, cable met renewed selling there and tumbled to an intra-day low at 1.5352 in New York afternoon on dollar's strength.
UK manufacturing PMI came in 54.1, higher than forecast of 53.4.
In other news, Germany's Merkel said 'now Greece needs to be more specific about its reform proposals; there is need for stronger economic policy coordination among Eurozone members.'
Data to be released on Tuesday:
Australia building approvals, RBA rate decision, Swiss GDP, Germany retail sales, UK construction PMI, EU producer prices, Canada GDP, producer prices, U.S. redbook retail sales and ISM New York index.
Euro surrenders intra-day gains ahead of ECB meeting
The single currency pared its initial gains and retreated in New York afternoon as investors awaited the launch of outright QE from the ECB later this week.
Earlier in the day, although euro opened lower and retreated to session low at 1.1160, price gained to 1.1184 ahead of European open. Intra-day ascent accelerated after the release of upbeat manufacturing PMIs from the euro area and price hit an intra-day high at 1.1241 ahead of New York open before retreating on broad-based dollar strength.
Italy and Germany manufacturing PMIs came in better-than-expected at 51.9 n 51.1 vs forecasts of 50.3 n 50.9 respectively.
Versus the Japanese yen, the greenback traded with a firm bias in Asia and gained to 119.97 in European morning before easing off. Dollar found renewed buying at 119.66 and rose to an intra-day high at 120.19 in New York session, helped by the release of upbeat U.S. manufacturing PMI.
U.S. manufacturing PMI rose to 55.1 from 54.3 previously.
Although the British pound remained under pressure in Asia and weakened to 1.5386 in early European morning, price briefly rebounded to 1.5421 after the release of upbeat UK manufacturing PMI. However, cable met renewed selling there and tumbled to an intra-day low at 1.5352 in New York afternoon on dollar's strength.
UK manufacturing PMI came in 54.1, higher than forecast of 53.4.
In other news, Germany's Merkel said 'now Greece needs to be more specific about its reform proposals; there is need for stronger economic policy coordination among Eurozone members.'
Data to be released on Tuesday:
Australia building approvals, RBA rate decision, Swiss GDP, Germany retail sales, UK construction PMI, EU producer prices, Canada GDP, producer prices, U.S. redbook retail sales and ISM New York index.
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