Market Review - 23/03/2015 23:01GMT
Dollar continues to fall broadly on long liquidation
The single currency rallied from 1.0868 in Europe to as high as 1.0971 in late New York as market players continued to adjust their bullish dollar positions on the likelihood that Federal Reserve policy will be accommodative over the near term.
European Central Bank President Mario Draghi said Greek banks are solvent; liquidity situation has been deteriorating, Greek bank dependance on ECB funding has increased; does not think there is a systemic risk now to eurozone.
Merkel said in news conference with Tsipras the Greek reform programme will be evaluated not by Germany but by Eurogroup; we want Greece to be strong economically, have growth and reduce high unemployment; should nobody should expect results on Greek reforms from this meeting with Tsipras.
The greenback ratcheted lower from European high at 120.17 to 119.59 in New York morning before stabilizing.
BoJ Governor Haruhiko Kuroda said he told PM Shinzo Abe on Monday that inflation is slowing due to a decline in oil prices but there is no change in the long-term rising trend for consumer prices as the economy improves and said he also told Abe that the economy remains on a gradual recovery path. He said that monetary policy was not discussed, but that may do little to quell speculation that the prime minister had a message for the central bank governor.
Fed Vice Chair Stanley Fischer said a Fed rate hike is "widely expected" this year, though the path for subsequent policy moves will be on a meeting-by-meeting basis. Traders and investors are focused on when the Fed will tighten policy, viewed as most likely in September or October.
The British pound spent a roller-coaster session on Monday as despite initial rise to 1.4990 in New Zealand, cable retreated to 1.4840 in Europe and then rebounded strongly to 1.4973 in late New York in tandem with euro.
Tuesday will see the release of Australia's CB leading index, China HSBC manufacturing PMI, Germany's manufacturing PMI, eurozones manufacturing PMI, U.K. CPI, PPI, RPI and DCLG house price, U.S. CPI, Redbook and new home sales.
Dollar continues to fall broadly on long liquidation
The single currency rallied from 1.0868 in Europe to as high as 1.0971 in late New York as market players continued to adjust their bullish dollar positions on the likelihood that Federal Reserve policy will be accommodative over the near term.
European Central Bank President Mario Draghi said Greek banks are solvent; liquidity situation has been deteriorating, Greek bank dependance on ECB funding has increased; does not think there is a systemic risk now to eurozone.
Merkel said in news conference with Tsipras the Greek reform programme will be evaluated not by Germany but by Eurogroup; we want Greece to be strong economically, have growth and reduce high unemployment; should nobody should expect results on Greek reforms from this meeting with Tsipras.
The greenback ratcheted lower from European high at 120.17 to 119.59 in New York morning before stabilizing.
BoJ Governor Haruhiko Kuroda said he told PM Shinzo Abe on Monday that inflation is slowing due to a decline in oil prices but there is no change in the long-term rising trend for consumer prices as the economy improves and said he also told Abe that the economy remains on a gradual recovery path. He said that monetary policy was not discussed, but that may do little to quell speculation that the prime minister had a message for the central bank governor.
Fed Vice Chair Stanley Fischer said a Fed rate hike is "widely expected" this year, though the path for subsequent policy moves will be on a meeting-by-meeting basis. Traders and investors are focused on when the Fed will tighten policy, viewed as most likely in September or October.
The British pound spent a roller-coaster session on Monday as despite initial rise to 1.4990 in New Zealand, cable retreated to 1.4840 in Europe and then rebounded strongly to 1.4973 in late New York in tandem with euro.
Tuesday will see the release of Australia's CB leading index, China HSBC manufacturing PMI, Germany's manufacturing PMI, eurozones manufacturing PMI, U.K. CPI, PPI, RPI and DCLG house price, U.S. CPI, Redbook and new home sales.
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