Market Review - 11/02/2016 22:25GMT
Dollar falls broadly on risks aversion
The greenback dropped against majority of its peers on Thursday as fears of a slowdown in global growth, triggered by a selloff in stocks worldwide, increased risk aversion.
Versus the Japanese yen, the greenback dropped in Asia due to the selloff in Nikkei-225 and tumbled further to a fresh 15-month trough at 110.99 in European morning on risk-averse buying of yen. Despite a brief but sharp rebound to 113.20 ahead of New York open on market rumour of BoJ intervention, price fell again to 111.57 in New York before stabilising.
The single currency traded narrowly in Asia and gained to 1.1355 in European morning on cross-buying in eur/gbp. Euro continued to ratchet higher and rose to an intra-day high at 1.1376 at New York midday on dollar's broad-based weakness.
The British pound fell from Asian high at 1.4564 and tumbled to 1.4396 in European morning, then lower to an intra-day low at 1.4383 at New York open on cross-selling of sterling vs euro due to ECB Nowotny's comments on Brexit. Later, cable pared its losses and staged a short-covering rebound to 1.4479 in New York morning, then 1.4485 near New York close before stabilising.
ECB Governing Council member Ewald Nowotny said 'Brexit would be linked to loss of privileges for City of London; see no reaon to introduce limt for cash payments; inflation could become negative in some months of H1, could increase in H2; ECB was successful at averting deflation in EZ.'
In other news, Fed's Yellen said 'stronger dlr was anticipated; degree of dlr appreciation not anticipated; evidence suggests expansions don't die of old age; recognize that international factors may well influence balance of risks; its premature to make judgement on international factors; sees some evidence of faster wage growth; still expects further pick up in wage growth.'
On the data front, U.S. initial jobless claims dropped to 269K from previous reading of 285K.
Data to be released on Friday:
Germany CPI, GDP, Harmonised index of consumer prices, France nonfarm payrolls, Italy GDP, Eurozone GDP, industrial production, U.S. retail sales, import price index, export price index, leading economic index, business inventories and Reuters/University of Michigan consumer sentiment index.
Dollar falls broadly on risks aversion
The greenback dropped against majority of its peers on Thursday as fears of a slowdown in global growth, triggered by a selloff in stocks worldwide, increased risk aversion.
Versus the Japanese yen, the greenback dropped in Asia due to the selloff in Nikkei-225 and tumbled further to a fresh 15-month trough at 110.99 in European morning on risk-averse buying of yen. Despite a brief but sharp rebound to 113.20 ahead of New York open on market rumour of BoJ intervention, price fell again to 111.57 in New York before stabilising.
The single currency traded narrowly in Asia and gained to 1.1355 in European morning on cross-buying in eur/gbp. Euro continued to ratchet higher and rose to an intra-day high at 1.1376 at New York midday on dollar's broad-based weakness.
The British pound fell from Asian high at 1.4564 and tumbled to 1.4396 in European morning, then lower to an intra-day low at 1.4383 at New York open on cross-selling of sterling vs euro due to ECB Nowotny's comments on Brexit. Later, cable pared its losses and staged a short-covering rebound to 1.4479 in New York morning, then 1.4485 near New York close before stabilising.
ECB Governing Council member Ewald Nowotny said 'Brexit would be linked to loss of privileges for City of London; see no reaon to introduce limt for cash payments; inflation could become negative in some months of H1, could increase in H2; ECB was successful at averting deflation in EZ.'
In other news, Fed's Yellen said 'stronger dlr was anticipated; degree of dlr appreciation not anticipated; evidence suggests expansions don't die of old age; recognize that international factors may well influence balance of risks; its premature to make judgement on international factors; sees some evidence of faster wage growth; still expects further pick up in wage growth.'
On the data front, U.S. initial jobless claims dropped to 269K from previous reading of 285K.
Data to be released on Friday:
Germany CPI, GDP, Harmonised index of consumer prices, France nonfarm payrolls, Italy GDP, Eurozone GDP, industrial production, U.S. retail sales, import price index, export price index, leading economic index, business inventories and Reuters/University of Michigan consumer sentiment index.
Trendsetter does not warrant or guarantee the accuracy, timeliness or completeness to its service or information contained therein. Trendsetter does not give, whatsoever, warranties, expressed or implied, to the results to be obtained by using its services or information it provided. Users are trading on their own risk and Trendsetter shall not be responsible under any circumstances for the consequences of such activities. Trendsetter and its affiliates, in no event, be liable to users or any third parties for any consequential damages, however arising, including but not limited to damages caused by negligence whether such damages were foreseen or unforeseen.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.