Market Review - 20/04/2015 22:52GMT
Euro falls amid concerns Greece may default on debt payments
The single currency tumbled from 1.0824 to 1.0713 on Monday on renewed concerns that Greece may default on debts as International Monetary Fund (IMF) meetings over the weekend did nothing to ease those fears.
ECB's Nowotny said numbers have to be provided by Greek gov't to establish new programme; fears deal will not be ready for eurozone FinMins meeting this week; European economy clearly improving; ECB goal is price stability, no exchange rate goal; have had parity in the past between euro and dollar but will not make forecasts.
ECB's Constancio said ECB thinks that Greek banks are solvent; cannot promise that we will fund Greece whatever the situation, amounts and conditions; Greek banks should not increase exposure to the Greek state; convinced that there will be no Greek exit; we think that Greek exit should not happen; treaty does not foresee that a country can be legally expelled from euro.
Despite dollar's brief breach of last Friday's low at 118.57 to 118.53 in Europe due to cross buying in Japanese yen, the greenback rebounded on dollar's broad-based strength due to the rally in U.S. stock markets. Fed's Dudley said timing of rate hike data dependent; we have to see what unfolds; U.S. economy has further to go twd employment, inflation goals; rate hike will likely bring market stress, turbulence; U.S. rate hike could create significant challenges for emerging economies.
Cable gained minor support after U.K. Rightmove showed asking prices for homes in England hit new high. The British rebounded briefly from 1.4936 (New Zealand low from Reuters) to 1.4983 before tumbling to 1.4888 in New York morning on dollar's strength elsewhere due to the rally in U.S. stock markets.
The Australian and New Zealand dollars rose initially after China on Sunday cut the amount of cash that banks must hold as reserves (RRR) in its latest attempt to help spur bank lending and combat slowing growth, however, Australian dollar tumbled to as low as 0.7714 in New York morning after RBA's Stevens said RBA board has clearly signalled willingness to lower rates again if needed; A$ likely to fall further yet over time; board proceeding with an appropriate degree of caution on interest rates; low rates are working to boost home building, household wealth; limits to what monetary policy can achieve, both at home and globally; liquidity has decline in global markets, investors complacent on risks.
Tuesday will see the release of RBA meeting minutes, Japan's lending economic index, Germany's ZEW economic sentiment and U.S. Redbook.
Euro falls amid concerns Greece may default on debt payments
The single currency tumbled from 1.0824 to 1.0713 on Monday on renewed concerns that Greece may default on debts as International Monetary Fund (IMF) meetings over the weekend did nothing to ease those fears.
ECB's Nowotny said numbers have to be provided by Greek gov't to establish new programme; fears deal will not be ready for eurozone FinMins meeting this week; European economy clearly improving; ECB goal is price stability, no exchange rate goal; have had parity in the past between euro and dollar but will not make forecasts.
ECB's Constancio said ECB thinks that Greek banks are solvent; cannot promise that we will fund Greece whatever the situation, amounts and conditions; Greek banks should not increase exposure to the Greek state; convinced that there will be no Greek exit; we think that Greek exit should not happen; treaty does not foresee that a country can be legally expelled from euro.
Despite dollar's brief breach of last Friday's low at 118.57 to 118.53 in Europe due to cross buying in Japanese yen, the greenback rebounded on dollar's broad-based strength due to the rally in U.S. stock markets. Fed's Dudley said timing of rate hike data dependent; we have to see what unfolds; U.S. economy has further to go twd employment, inflation goals; rate hike will likely bring market stress, turbulence; U.S. rate hike could create significant challenges for emerging economies.
Cable gained minor support after U.K. Rightmove showed asking prices for homes in England hit new high. The British rebounded briefly from 1.4936 (New Zealand low from Reuters) to 1.4983 before tumbling to 1.4888 in New York morning on dollar's strength elsewhere due to the rally in U.S. stock markets.
The Australian and New Zealand dollars rose initially after China on Sunday cut the amount of cash that banks must hold as reserves (RRR) in its latest attempt to help spur bank lending and combat slowing growth, however, Australian dollar tumbled to as low as 0.7714 in New York morning after RBA's Stevens said RBA board has clearly signalled willingness to lower rates again if needed; A$ likely to fall further yet over time; board proceeding with an appropriate degree of caution on interest rates; low rates are working to boost home building, household wealth; limits to what monetary policy can achieve, both at home and globally; liquidity has decline in global markets, investors complacent on risks.
Tuesday will see the release of RBA meeting minutes, Japan's lending economic index, Germany's ZEW economic sentiment and U.S. Redbook.
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