Market Review - 18/05/2015 22:53GMT
Euro falls broadly vs yen and sterling on profit taking Monday
Despite last Friday's rally to a fresh 3-month peak of 1.1467, the single currency ratcheted lower on Monday. Euro penetrated last Friday's hourly support at 1.1412 in European morning and tumbled to 1.1366 before rebounding strongly to 1.1424 but only to fall again due to dollar's broad-based strength on U.S. growth hopes. Euro fell further to an intra-day low of 1.1299 near New York close. Despite last Friday's selloff to 119.20 in New York, the greenback rallied to 119.75 in Asian morning on Monday in part due to the rise in Nikkei-225 index. U.S. dollar later extended gain to 120.04 near New York close.
A paper published Monday by the Federal Reserve Bank of San Francisco said, potentially adding to arguments for raising interest rates sooner rather than later. The U.S. economy is probably not as weak as current estimates suggested. A chart shown in the paper suggested first-quarter growth may have been closer to 1.8%. That's still below the economy's potential but not dramatically so. A stronger economy suggests a lower hurdle for the Fed to raise interest rates that have been near zero since December 2008.
San Francisco Fed President John Williams, whose chief research economist co-authored Monday's paper, has said he believes the economy will bounce back this quarter and may be strong enough for the Fed to begin raising interest rates even as soon as June.
Greek PM Tsipras said on Monday deal with lenders does not only concern Greece but whole of euro zone; sought deal must address greece's long-term funding issue; deal with EU/IMF lenders must not impose further pension cuts; Greece needs growth that will be based on stronger domestic demand, not just exports; deal with EU/IMF lenders must influde bold investment programme. Greek finance minister Varoufakis said Greece has proposed that ESM pays maturing Greek bonds held by ECB; Athens can then pay back ESM later in the future.
Despite last Frdayi's brief rebound from 1.5702 to 1.5809, the British pound ratcheted lower and penetrated aforesaid support at 1.5702 at European morning on Monday. Cable then weakened to 1.5651 before rebounding briefly to 1.5707 but only to fall again to 1.5638 near New York close.
Tuesday will see the release of New Zealand's PPI, Australia's CB leading indicator and RBA meeting's minutes, U.K. CPI, PPI, RPI and DCLG house price index, Germany's ZEW economic sentiment, eurozone inflation report, U.S. building permits, housing starts and Redbook.
Euro falls broadly vs yen and sterling on profit taking Monday
Despite last Friday's rally to a fresh 3-month peak of 1.1467, the single currency ratcheted lower on Monday. Euro penetrated last Friday's hourly support at 1.1412 in European morning and tumbled to 1.1366 before rebounding strongly to 1.1424 but only to fall again due to dollar's broad-based strength on U.S. growth hopes. Euro fell further to an intra-day low of 1.1299 near New York close. Despite last Friday's selloff to 119.20 in New York, the greenback rallied to 119.75 in Asian morning on Monday in part due to the rise in Nikkei-225 index. U.S. dollar later extended gain to 120.04 near New York close.
A paper published Monday by the Federal Reserve Bank of San Francisco said, potentially adding to arguments for raising interest rates sooner rather than later. The U.S. economy is probably not as weak as current estimates suggested. A chart shown in the paper suggested first-quarter growth may have been closer to 1.8%. That's still below the economy's potential but not dramatically so. A stronger economy suggests a lower hurdle for the Fed to raise interest rates that have been near zero since December 2008.
San Francisco Fed President John Williams, whose chief research economist co-authored Monday's paper, has said he believes the economy will bounce back this quarter and may be strong enough for the Fed to begin raising interest rates even as soon as June.
Greek PM Tsipras said on Monday deal with lenders does not only concern Greece but whole of euro zone; sought deal must address greece's long-term funding issue; deal with EU/IMF lenders must not impose further pension cuts; Greece needs growth that will be based on stronger domestic demand, not just exports; deal with EU/IMF lenders must influde bold investment programme. Greek finance minister Varoufakis said Greece has proposed that ESM pays maturing Greek bonds held by ECB; Athens can then pay back ESM later in the future.
Despite last Frdayi's brief rebound from 1.5702 to 1.5809, the British pound ratcheted lower and penetrated aforesaid support at 1.5702 at European morning on Monday. Cable then weakened to 1.5651 before rebounding briefly to 1.5707 but only to fall again to 1.5638 near New York close.
Tuesday will see the release of New Zealand's PPI, Australia's CB leading indicator and RBA meeting's minutes, U.K. CPI, PPI, RPI and DCLG house price index, Germany's ZEW economic sentiment, eurozone inflation report, U.S. building permits, housing starts and Redbook.
Recommended Content
Editors’ Picks
EUR/USD climbs to 10-day highs above 1.0700
EUR/USD gained traction and rose to its highest level in over a week above 1.0700 in the American session on Tuesday. The renewed US Dollar weakness following the disappointing PMI data helps the pair stretch higher.
GBP/USD extends recovery beyond 1.2400 on broad USD weakness
GBP/USD gathered bullish momentum and extended its daily rebound toward 1.2450 in the second half of the day. The US Dollar came under heavy selling pressure after weaker-than-forecast PMI data and fueled the pair's rally.
Gold rebounds to $2,320 as US yields turn south
Gold reversed its direction and rose to the $2,320 area, erasing a large portion of its daily losses in the process. The benchmark 10-year US Treasury bond yield stays in the red below 4.6% following the weak US PMI data and supports XAU/USD.
Here’s why Ondo price hit new ATH amid bearish market outlook Premium
Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.
Germany’s economic come back
Germany is the sick man of Europe no more. Thanks to its service sector, it now appears that it will exit recession, and the economic future could be bright. The PMI data for April surprised on the upside for Germany, led by the service sector.