Market Review - 25/07/2015 02:19GMT
Dollar rises on Fed staff rate hike forecast by year-end
The single currency tumbled to as low as 1.0925 in New York morning on Friday due to dollar's broad-based strength as the U.S. central bank released its staff's projection which showed they expected a quarter-point increase in U.S. rates by year-end.
The flash Caixin/Markit China Manufacturing Purchasing Managers' Index (PMI) dropped to 48.2, the lowest since April last year, while Markit's euro zone PMI gauge fell from a four-year high to 53.7 in early July. The weak overseas economic outlook also supported the greenback.
Market players are expecting Fed policymakers may provide clues on a rate "lift-off" in a statement after they meet next week.
ECB's Noyer in Le Monde newspaper said 'thinks there is no longer risk of Greek exit from eurozone; risk of contagion from Greece for rest of European banks is next to zero.'
In other news, senior EU sources said 'EU/IMF have reached staff-level agreement on conclusion of 7th assessment of Cyprus bailout; Cyprus is making overall good progress in its economic adjustment programme; does not see any need for new fiscal measures in Cyprus, but need to keep up progress on reforms; Cyprus is emerging from recession, sees GDP growth of around 0.5% in 2014.'
The British pound weakened to a low of 1.5469 in Europe in tandem with euro due to dollar's strength elsewhere, however, short-covering lifted the pair to 1.5527 in New York morning.
British Bankers' Association said on Thur that BAA mortgage approvals rose more than expected to a seasonally adjusted 44.5K in Jun, from 42.9K in the preceding month whose figure was revised up from 42.5K. Market had expected BAA mortgage approvals to rise to 43.5K last month.
This week will see the release of Japan's CSPI, New Zealand's ANZ business confidence, Germany's import price, Ifo business climate, U.K. CBI trends, U.S. durable goods and building permits on Monday.
Australia's NAB business confidence, U.K. GDP, Canada's producer prices, U.S. Redbook, Markit services PMI and consumer confidence on Tuesday.
Japan's retail sales, Germany's GfK consumer sentiment, Swiss UBS consumption indicator, U.K. mortgage approvals and CBI distributive trades, U.S. pending home sales change, FOMC rate decision and Fed's monetary policy statement on Wednesday.
New Zealand's building consents, Japan's industrial output and IP forecast, Australia's building approvals, import and export prices, Swiss KOF indicator, Germany's unemployment, eurozone business climate, consumer inflation expectation, consumer confidence, unemployment rate, eurozone unemployment rate, Germany's CPI and HICP, U.S. initial jobless claims on Thusday.
U.K. GfK consumer confidence, Japan's all household spending, CPI and unemployment rate, Australia's PPI, Japan's construction orders and housing starts, eurozone inflation, Canada's GDP, U.S. employment costs, Chicago PMI and Reuters/Michigan consumer sentiment index on Friday.
Dollar rises on Fed staff rate hike forecast by year-end
The single currency tumbled to as low as 1.0925 in New York morning on Friday due to dollar's broad-based strength as the U.S. central bank released its staff's projection which showed they expected a quarter-point increase in U.S. rates by year-end.
The flash Caixin/Markit China Manufacturing Purchasing Managers' Index (PMI) dropped to 48.2, the lowest since April last year, while Markit's euro zone PMI gauge fell from a four-year high to 53.7 in early July. The weak overseas economic outlook also supported the greenback.
Market players are expecting Fed policymakers may provide clues on a rate "lift-off" in a statement after they meet next week.
ECB's Noyer in Le Monde newspaper said 'thinks there is no longer risk of Greek exit from eurozone; risk of contagion from Greece for rest of European banks is next to zero.'
In other news, senior EU sources said 'EU/IMF have reached staff-level agreement on conclusion of 7th assessment of Cyprus bailout; Cyprus is making overall good progress in its economic adjustment programme; does not see any need for new fiscal measures in Cyprus, but need to keep up progress on reforms; Cyprus is emerging from recession, sees GDP growth of around 0.5% in 2014.'
The British pound weakened to a low of 1.5469 in Europe in tandem with euro due to dollar's strength elsewhere, however, short-covering lifted the pair to 1.5527 in New York morning.
British Bankers' Association said on Thur that BAA mortgage approvals rose more than expected to a seasonally adjusted 44.5K in Jun, from 42.9K in the preceding month whose figure was revised up from 42.5K. Market had expected BAA mortgage approvals to rise to 43.5K last month.
This week will see the release of Japan's CSPI, New Zealand's ANZ business confidence, Germany's import price, Ifo business climate, U.K. CBI trends, U.S. durable goods and building permits on Monday.
Australia's NAB business confidence, U.K. GDP, Canada's producer prices, U.S. Redbook, Markit services PMI and consumer confidence on Tuesday.
Japan's retail sales, Germany's GfK consumer sentiment, Swiss UBS consumption indicator, U.K. mortgage approvals and CBI distributive trades, U.S. pending home sales change, FOMC rate decision and Fed's monetary policy statement on Wednesday.
New Zealand's building consents, Japan's industrial output and IP forecast, Australia's building approvals, import and export prices, Swiss KOF indicator, Germany's unemployment, eurozone business climate, consumer inflation expectation, consumer confidence, unemployment rate, eurozone unemployment rate, Germany's CPI and HICP, U.S. initial jobless claims on Thusday.
U.K. GfK consumer confidence, Japan's all household spending, CPI and unemployment rate, Australia's PPI, Japan's construction orders and housing starts, eurozone inflation, Canada's GDP, U.S. employment costs, Chicago PMI and Reuters/Michigan consumer sentiment index on Friday.
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