Market Review - 04/03/2015 23:05GMT
Euro tumbles to fresh 11-year low ahead of ECB QE
The single currency fell to a fresh 11-year trough against the greenback on Wednesday, pressured by the release of weak services PMI together with the imminent launch of outright quantitative easing from the ECB.
Earlier in the day, the single currency remained under pressure in Asia and fell sharply to 1.1116 in European morning, weighed down by the release of weak Germany and EZ services PMI. Despite a brief recovery to 1.1145 at New York open due to downbeat U.S. ADP employment data, renewed selling emerged and price tumbled to a fresh 11-year low at 1.1061 in New York morning before stabilizing.
Germany and EZ services PMI came in weaker-than-expected at 54.7 and 53.7 vs forecasts of 55.5 and 53.9 respectively.
Versus the Japanese yen, although the greenback rose from Asian low at 119.50 to session high at 119.83 ahead of European open, price retreated to 119.51, then lower to session low at 119.47 in New York morning after the release of U.S. ADP employment. However, dollar pared its losses and recovered to 119.79, helped by the release of upbeat U.S. ISM non-manufacturing PMI.
U.S. ADP employment came in weaker-than-expected at 212K vs forecast of 220K whilst ISM non-manufacturing PMI was reported at 56.9, better than forecast of 56.5.
The British pound also remained under pressure in Asia and weakened to 1.5340 at European open before rebounding to 1.5369 in European morning. However, renewed selling emerged after the release of downbeat UK services PMI and price fell to 1.5326. Cable continued to ratchet lower and tumbled in tandem with euro to an intra-day low at 1.5250 in New York session before recovering.
UK services PMI came in weaker-than-expected at 56.7 vs forecast of 57.5.
In other news, Fed's Evans said 'calls for patience, no rate hikes until 2016; has serious concerns about excessively low inflation; inflation below 2% until end of 2018; Fed shud only raise rates when confidence that inflation is heading higher; sees U.S. GDP at 3% for next couple of years; sees full employment at 5%, labor mkt slack; costs of tightening monetary policy too late are low; raising rates too early cud undermine recovery.'
Data to be released on Thursday:
Australia exports, imports, trade balance, retail sales, France unemployment rate, Germany industrial orders, Italy GDP, UK BoE rate decision, EU ECB rate decision, Canada Ivey PMI and U.S. jobless claims and factory orders.
Euro tumbles to fresh 11-year low ahead of ECB QE
The single currency fell to a fresh 11-year trough against the greenback on Wednesday, pressured by the release of weak services PMI together with the imminent launch of outright quantitative easing from the ECB.
Earlier in the day, the single currency remained under pressure in Asia and fell sharply to 1.1116 in European morning, weighed down by the release of weak Germany and EZ services PMI. Despite a brief recovery to 1.1145 at New York open due to downbeat U.S. ADP employment data, renewed selling emerged and price tumbled to a fresh 11-year low at 1.1061 in New York morning before stabilizing.
Germany and EZ services PMI came in weaker-than-expected at 54.7 and 53.7 vs forecasts of 55.5 and 53.9 respectively.
Versus the Japanese yen, although the greenback rose from Asian low at 119.50 to session high at 119.83 ahead of European open, price retreated to 119.51, then lower to session low at 119.47 in New York morning after the release of U.S. ADP employment. However, dollar pared its losses and recovered to 119.79, helped by the release of upbeat U.S. ISM non-manufacturing PMI.
U.S. ADP employment came in weaker-than-expected at 212K vs forecast of 220K whilst ISM non-manufacturing PMI was reported at 56.9, better than forecast of 56.5.
The British pound also remained under pressure in Asia and weakened to 1.5340 at European open before rebounding to 1.5369 in European morning. However, renewed selling emerged after the release of downbeat UK services PMI and price fell to 1.5326. Cable continued to ratchet lower and tumbled in tandem with euro to an intra-day low at 1.5250 in New York session before recovering.
UK services PMI came in weaker-than-expected at 56.7 vs forecast of 57.5.
In other news, Fed's Evans said 'calls for patience, no rate hikes until 2016; has serious concerns about excessively low inflation; inflation below 2% until end of 2018; Fed shud only raise rates when confidence that inflation is heading higher; sees U.S. GDP at 3% for next couple of years; sees full employment at 5%, labor mkt slack; costs of tightening monetary policy too late are low; raising rates too early cud undermine recovery.'
Data to be released on Thursday:
Australia exports, imports, trade balance, retail sales, France unemployment rate, Germany industrial orders, Italy GDP, UK BoE rate decision, EU ECB rate decision, Canada Ivey PMI and U.S. jobless claims and factory orders.
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