Market Review - 18/07/2016 22:24 All times in GMT
Yen weakens broadly on return of risk appetite
The Japanese yen weakened across the board after the failed attempt of a military coup in Turkey improved risk appetite.
The greenback rose briefly to 106.02 in Australia on comments from Japanese official Suga before swiftly retreating to 105.31 at Asian open. However, price pared its losses and rose to an intra-day high at 106.20 in New York morning as risk appetite returned to the market after the failed attempt of a military coup in Turkey.
Japan's Suga in an interview on Saturday said 'We want to make full use of every possible resource, including for financing, to make it robust; I want to make it clear that we are not planning to issue deficit bonds.'
The single currency traded with a firm bias in Asia and gained to 1.1071, then 1.1073 at European open. Despite a brief retreat to 1.1037 in European morning, euro rose to an intra-day high at 1.1084 in New York morning.
The British pound rose to 1.3270 in Australia and continued to trade with a firm bias in Asia and edged up to 1.3292 in European morning. Cable met renewed buying at 1.3218 and rose to an intra-day high at 1.3316 in New York morning before stabilising.
In other news, BoE's Weale said 'QE second round had been as effective as the first round; possible that with very low interest rates, impact of QE is weakened; wage growth over last few mths has been faster than consistent with inflation target.'
Data to be released on Tuesday:
U.K. CPI, retail price index, producer price index, house price index, Germany ZEW survey, Eurozone ZEW survey, U.S. building permits, housing starts and Redbook index.
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