Market Review - 26/04/2015 10:46GMT
Dollar drops broadly after disappointing U.S. durable goods order delays timing of Fed hike
The single currency swung wildly again on Friday, despite resumption of recent up move to a fresh 2-week peak at 1.0899 in Europe, euro subsequently retreated to 1.0810 after euro zone finance ministers told Greece it will get no more aid until it strikes a full economic reform plan. Euro jumped to 1.0875 despite the release of much stronger-than-expected U.S. durable goods data, however, dealers quickly sold the greenback after March durable goods excluding defence capital goods, a proxy for business spending activity, fell 0.5% after a a revised 2.2% drop in February. The the pair retreated to 1.0805 before rebounding to 1.0879 in New York afternoon.
Germany's Merkel said we will do everything to ensure that Greece stays in the eurozone; I have the impression that all sides are working on a solution for Greece; certain thinks like privatisations are necessary; it would be good for Greece to get a deal quickly, but it must undertake reforms.
Greek finance minister Varoufakis said we need a deal and we are ready to compromise to achieve it; there was an intense Eurogroup on Friday in Riga. Varoufakis said there was a clear indication that the process of negotiation has converged in last weeks; foreclosures law demanded by creditors is also counterproductive; Greece wants deal on primary surpluses which does not undermine growth, differs from creditors; agreement with lenders will be difficult but will happen, and quickly, as there is no other choice; Greece open to any suggestions that would speed up talks; Greece and creditors have come closer on matters of privatisation in last two weeks, on judiciary; Greek government understands it has not right to fail in the talks; Greek gov't does not want to sign off on pledges of primary surpluses that are impossible to achieve; liquidity is tight because Greek government is financing all redemptions from own resources.
EU Economics Commissioner Pierre Moscovici said that despite some progress in talks with Athens, a deal was still far off. Jeroen Dijsselbloem, chairman of the euro zone finance ministers, said Greece still needs to deliver a list of reforms to receive funding, adding Athens needs to work faster and euro zone ministers will take stock of progress at the next meeting on May 11 in Brussels.
The White House said on Friday that U.S. and Japanese negotiators have made "substantial progress" toward a deal on a major Pacific free-trade pact but President Barack Obama and Prime Minister Shinzo Abe are not expected to announce a final accord during Abe's Washington visit next week.
The greenback fell against the Japansese yen to session low of 118.83 due to dollar's broad-based weakness after the U.S. data.
The British pound tracked euro's movements closely and rallied to as high as 1.5188, a fresh 6-week peak, near New York close due to active cross buying in sterling especially versus euro and Japanese yen.
This week will see the release of U.K. CBI Trends - Orders, U.S. Markit Service PMI on Monday. New Zealand will be closed for ANZAC Day holiday.
Japan's retail sales, U.K. GDP, U.S. Redbook, consumer confidence and Richmond Fed composite index on Tuesday.
New Zealand's imports, exports and trade balance, Swiss UBS consumption indicator, eurozone business climate, consumer confidence, economic sentiment, U.K. CBI distributive Trades, Germany's CPI and HICP, Canada's producer prices, U.S. pending homes sales, FOMC rate decision on Wednesday.
New Zealand's interest rate decision, U.K. GfK consumer confidence, Japan's industrial output prelim., IP forecast, Australia's imports and exports, Japan's construction orders and housing starts, Swiss KOF indicators, Germany's unemployment rate, eurozone flash inflation and unemployment rate, U.S. PCE price index, core PCE and Chicago PMI on Thursday.
Japan's unemployment rate, CPI and China's NBS manufacturing PMI, Australia's PPI, Japan's manufacturing PMI, U.K. Markit/CIPS manufacturing PMI and mortgage approvals, U.S. ISM manufacturing PMI and construction spending on Friday.
Dollar drops broadly after disappointing U.S. durable goods order delays timing of Fed hike
The single currency swung wildly again on Friday, despite resumption of recent up move to a fresh 2-week peak at 1.0899 in Europe, euro subsequently retreated to 1.0810 after euro zone finance ministers told Greece it will get no more aid until it strikes a full economic reform plan. Euro jumped to 1.0875 despite the release of much stronger-than-expected U.S. durable goods data, however, dealers quickly sold the greenback after March durable goods excluding defence capital goods, a proxy for business spending activity, fell 0.5% after a a revised 2.2% drop in February. The the pair retreated to 1.0805 before rebounding to 1.0879 in New York afternoon.
Germany's Merkel said we will do everything to ensure that Greece stays in the eurozone; I have the impression that all sides are working on a solution for Greece; certain thinks like privatisations are necessary; it would be good for Greece to get a deal quickly, but it must undertake reforms.
Greek finance minister Varoufakis said we need a deal and we are ready to compromise to achieve it; there was an intense Eurogroup on Friday in Riga. Varoufakis said there was a clear indication that the process of negotiation has converged in last weeks; foreclosures law demanded by creditors is also counterproductive; Greece wants deal on primary surpluses which does not undermine growth, differs from creditors; agreement with lenders will be difficult but will happen, and quickly, as there is no other choice; Greece open to any suggestions that would speed up talks; Greece and creditors have come closer on matters of privatisation in last two weeks, on judiciary; Greek government understands it has not right to fail in the talks; Greek gov't does not want to sign off on pledges of primary surpluses that are impossible to achieve; liquidity is tight because Greek government is financing all redemptions from own resources.
EU Economics Commissioner Pierre Moscovici said that despite some progress in talks with Athens, a deal was still far off. Jeroen Dijsselbloem, chairman of the euro zone finance ministers, said Greece still needs to deliver a list of reforms to receive funding, adding Athens needs to work faster and euro zone ministers will take stock of progress at the next meeting on May 11 in Brussels.
The White House said on Friday that U.S. and Japanese negotiators have made "substantial progress" toward a deal on a major Pacific free-trade pact but President Barack Obama and Prime Minister Shinzo Abe are not expected to announce a final accord during Abe's Washington visit next week.
The greenback fell against the Japansese yen to session low of 118.83 due to dollar's broad-based weakness after the U.S. data.
The British pound tracked euro's movements closely and rallied to as high as 1.5188, a fresh 6-week peak, near New York close due to active cross buying in sterling especially versus euro and Japanese yen.
This week will see the release of U.K. CBI Trends - Orders, U.S. Markit Service PMI on Monday. New Zealand will be closed for ANZAC Day holiday.
Japan's retail sales, U.K. GDP, U.S. Redbook, consumer confidence and Richmond Fed composite index on Tuesday.
New Zealand's imports, exports and trade balance, Swiss UBS consumption indicator, eurozone business climate, consumer confidence, economic sentiment, U.K. CBI distributive Trades, Germany's CPI and HICP, Canada's producer prices, U.S. pending homes sales, FOMC rate decision on Wednesday.
New Zealand's interest rate decision, U.K. GfK consumer confidence, Japan's industrial output prelim., IP forecast, Australia's imports and exports, Japan's construction orders and housing starts, Swiss KOF indicators, Germany's unemployment rate, eurozone flash inflation and unemployment rate, U.S. PCE price index, core PCE and Chicago PMI on Thursday.
Japan's unemployment rate, CPI and China's NBS manufacturing PMI, Australia's PPI, Japan's manufacturing PMI, U.K. Markit/CIPS manufacturing PMI and mortgage approvals, U.S. ISM manufacturing PMI and construction spending on Friday.
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