Market Review - 04/08/2015 22:36GMT
Dollar rallied broadly on Atlanta Fed Lockart's hawkish comments
U.S. dollar rose broadly against major currencies after Wall Street Journal reported that Fed's Lockhart said economy would have to suffer a "significant deterioration" for him not to support a rate hike in September.
Despite early rebound from Asian low at 1.0932 to 1.0988, the single currency ratcheted lower to 1.0946 in New York morning and then tumbled to as low as 1.0883 after hawkish comments from Fed's Lockhart.
In other news, Greek government spokeswoman Olga Gerovasili said 'believes bailout deal with lenders can be concluded by Aug 18; drafting of bailout deal to start on Wednesday.' Greek FinMin Tsakalotos said 'all issues will be concluded with lenders this week.'
The greenback traded narrowly in Asia n Europe on Tuesday. Dollar bounced briefly from Monday's low at 123.85 to 124.11 and then retreated to 123.80 before rising to 124.41 after hawkish comments from Fed's Lockhart.
Japan PM adviser Honda said 'sees no need for BoJ to ease policy further, inflation to approach 2% target in 2016; BoJ likely to taper QQR after determining impact of sales tax hike planned for April 2017; no need to worry about yen's current weakness as long as moves are gradual.'
The British pound proved quite tricky to trade on Tuesday as despite initial rise from Asian low at 1.5571 to 1.5618 at European open, price retreated briefly but sharply to 1.5572 in European morning on downbeat UK construction PMI. However, cable pared its losses and rose to 1.5628 ahead of New York open before tumbling to session low at 1.5561 in New York morning. Later, price staged a strong recovery to 1.5634 and then nose-dived to 1.5558 near New York close after hawkish comments from Fed's Lockhart.
RBA kept benchmark interest rate unchanged at 2.00%. RBA said in the statement, 'to continue assessing whether current rate setting effective; leaving rates unchanged appropriate; policy needs to be accommodative; growth seen below longer-term average; A$ adjusting to declines in commodity prices; inflation consistent with target; employment growth has been somewhat stronger; working with other regulators to contain housing market risk.' Australian dollar rallied against U.S. dollar from 0.7264 to as high as 0.7428 before retreating after hawkish comments from Fed's Lockhart.
Wednesday will see the release of New Zealand's HLFS unemployment rate and labour cost index, China's Caixin services PMI, Swiss CPI, Germany's, eurozone and U.K. Markit services PMI respectively, eurozone retail sales, U.S. ADP National employment, Canada's exports, imports and trade balance, U.S. ISM non-manufacturing PMI.
Dollar rallied broadly on Atlanta Fed Lockart's hawkish comments
U.S. dollar rose broadly against major currencies after Wall Street Journal reported that Fed's Lockhart said economy would have to suffer a "significant deterioration" for him not to support a rate hike in September.
Despite early rebound from Asian low at 1.0932 to 1.0988, the single currency ratcheted lower to 1.0946 in New York morning and then tumbled to as low as 1.0883 after hawkish comments from Fed's Lockhart.
In other news, Greek government spokeswoman Olga Gerovasili said 'believes bailout deal with lenders can be concluded by Aug 18; drafting of bailout deal to start on Wednesday.' Greek FinMin Tsakalotos said 'all issues will be concluded with lenders this week.'
The greenback traded narrowly in Asia n Europe on Tuesday. Dollar bounced briefly from Monday's low at 123.85 to 124.11 and then retreated to 123.80 before rising to 124.41 after hawkish comments from Fed's Lockhart.
Japan PM adviser Honda said 'sees no need for BoJ to ease policy further, inflation to approach 2% target in 2016; BoJ likely to taper QQR after determining impact of sales tax hike planned for April 2017; no need to worry about yen's current weakness as long as moves are gradual.'
The British pound proved quite tricky to trade on Tuesday as despite initial rise from Asian low at 1.5571 to 1.5618 at European open, price retreated briefly but sharply to 1.5572 in European morning on downbeat UK construction PMI. However, cable pared its losses and rose to 1.5628 ahead of New York open before tumbling to session low at 1.5561 in New York morning. Later, price staged a strong recovery to 1.5634 and then nose-dived to 1.5558 near New York close after hawkish comments from Fed's Lockhart.
RBA kept benchmark interest rate unchanged at 2.00%. RBA said in the statement, 'to continue assessing whether current rate setting effective; leaving rates unchanged appropriate; policy needs to be accommodative; growth seen below longer-term average; A$ adjusting to declines in commodity prices; inflation consistent with target; employment growth has been somewhat stronger; working with other regulators to contain housing market risk.' Australian dollar rallied against U.S. dollar from 0.7264 to as high as 0.7428 before retreating after hawkish comments from Fed's Lockhart.
Wednesday will see the release of New Zealand's HLFS unemployment rate and labour cost index, China's Caixin services PMI, Swiss CPI, Germany's, eurozone and U.K. Markit services PMI respectively, eurozone retail sales, U.S. ADP National employment, Canada's exports, imports and trade balance, U.S. ISM non-manufacturing PMI.
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