Market Review - 30/07/2015 19:54 GMT
U.S. dollar rises broadly on rate hike prospects
U.S. dollar rose broadly against major currencies on Thursday on rate hike prospects as U.S. Treasury yields rose after the release of U.S. gross domestic product data which encouraged bets that policymakers will start hiking U.S. interest rates as soon as September.
U.S. Commerce Department said gross domestic product expanded at a 2.3 percent annual rate as solid consumer spending offset the drag from weak business spending on equipment. First-quarter GDP, previously reported to have shrunk at a 0.2 percent pace, was revised up to show it rising at a 0.6 percent rate. The report also showed a pick-up in inflation during the quarter, adding speculation that the Fed may raise its first interest rate as soon as September since 2006. A separate report from the Labor Department showed first-time applications for unemployment benefits increased 12,000 last week to a seasonally adjusted 267,000. However, claims remained near their cycle lows.
The single currency remained under pressure throughout the day on Thursday following the selloff after Wednesday's release of FOMC statement. Euro ratcheted lower to 1.0991 to a session low of 1.0894 in New York before recovering.
IMF official said IMF won't reach deal with Greece on new debt program until Greece, Europeans find way to make Greece's debt sustainable; fund can only support a program that is comprehensive; 'will take some time' before these two sides are ready to take these decisions; fund will actively participate in discussions over Greece in the coming weeks; board accepted on Wednesday to authorize discussions on new Greek program.
Greek finance ministry official said finance minister to meet chief creditor representatives on Friday; dismissed FT report, saying IMF participating in talks.
The greenback found renewed buying at 123.88 in Asian morning on Thursday and then ratcheted higher following Wednesday's release of FOMC statement. The pair rose to as high as 124.58 due to dollar's broad-based strength before easing near New York close.
Cable swung wildly on Thur. Despite marginal fall below Wednesday's 1.5594 low to 1.5590 in Asia and then 1.5587 in European morning, short-covering lifted price to 1.5645. Cable then fell to 1.5563 before rebounding.
Friday will see the release of 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.
U.S. dollar rises broadly on rate hike prospects
U.S. dollar rose broadly against major currencies on Thursday on rate hike prospects as U.S. Treasury yields rose after the release of U.S. gross domestic product data which encouraged bets that policymakers will start hiking U.S. interest rates as soon as September.
U.S. Commerce Department said gross domestic product expanded at a 2.3 percent annual rate as solid consumer spending offset the drag from weak business spending on equipment. First-quarter GDP, previously reported to have shrunk at a 0.2 percent pace, was revised up to show it rising at a 0.6 percent rate. The report also showed a pick-up in inflation during the quarter, adding speculation that the Fed may raise its first interest rate as soon as September since 2006. A separate report from the Labor Department showed first-time applications for unemployment benefits increased 12,000 last week to a seasonally adjusted 267,000. However, claims remained near their cycle lows.
The single currency remained under pressure throughout the day on Thursday following the selloff after Wednesday's release of FOMC statement. Euro ratcheted lower to 1.0991 to a session low of 1.0894 in New York before recovering.
IMF official said IMF won't reach deal with Greece on new debt program until Greece, Europeans find way to make Greece's debt sustainable; fund can only support a program that is comprehensive; 'will take some time' before these two sides are ready to take these decisions; fund will actively participate in discussions over Greece in the coming weeks; board accepted on Wednesday to authorize discussions on new Greek program.
Greek finance ministry official said finance minister to meet chief creditor representatives on Friday; dismissed FT report, saying IMF participating in talks.
The greenback found renewed buying at 123.88 in Asian morning on Thursday and then ratcheted higher following Wednesday's release of FOMC statement. The pair rose to as high as 124.58 due to dollar's broad-based strength before easing near New York close.
Cable swung wildly on Thur. Despite marginal fall below Wednesday's 1.5594 low to 1.5590 in Asia and then 1.5587 in European morning, short-covering lifted price to 1.5645. Cable then fell to 1.5563 before rebounding.
Friday will see the release of 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.
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.