AceTrader 1-wk TRIAL
www.AceTraderFX.com 24-Hr Real-time Signals Consistent Performance Intra-day, Daily, Weekly. with Email Alerts Function Try 1-week for $25 USD
Market Review - 07/02/2012 23:14 All times in GMT
Euro rallies to 7-week high vs usd on Greek bailout hopes
The euro climbed to its highest level versus the greenback since December 12th on Tuesday following early reports an agreement on the bailout deal would be put to political leaders for approval on Tuesday before paring intra-day gains as the meeting was postponed to Wednesday.
Earlier in Asia, the single currency traded narrowly before making a quick bounce to 1.3136 after the Reserve Bank of Australia surprised the market by leaving its main cash rate unchanged at 4.25% (forecast 4.00%), price then dropped to a session low at 1.3089. However, buying interest there lifted the single currency to a high at 1.3169 in European morning before ratcheting lower to 1.3096 in European midday.
Later in New York, euro rallied to session high at 1.3270 after news the Greek government is drafting an agreement on the bailout deal to be put to political leaders for approval later on Tuesday, however, price retreated briefly on news the Greek political leaders' meeting on the bailout package was postponed to Wednesday.
The British pound also traded sideways in Asia and rallied in tandem with euro from 1.5789 to 1.5906 in New York. U.K. BRC retail sales fell only 0.3% m/m vs forecast of a 0.8% drop in January.
Federal Reserve Chairman Ben Bernanke said in prepared testimony to Senate 'still a long way to go before labor market operating normally; Fed is concerned there has been a modest increase in the sustainable rate of US unemployment; there is a concern that a very sharp change in the fiscal position in a short time could slow the recovery.'
Versus the Japanese yen, the greenback strengthened from 76.52 following confirmation from the Japan's Ministry of Finance that it used stealth intervention in the last months of 2011 and rose above previous day's 76.80 high to 76.97 before easing.
On the data front, Japan leading indicators for December improved to 93.2 from 90.3. Canada's housing permits increased 11.1% in December vs forecasts of 1.0% rise, November's figure was revised from -3.6% to 2.6%.
German industrial output was much worse-than-expected in December coming in at -2.9% m/m (biggest fall since January 2009) vs forecast of -0.3% and 0.4% y/y vs forecast of 4.3%.
Data to be released Wednesday:
Japan current account and economic watch DI, U.K. BRC shop price index, Switzerland Jobless rate, Germany trade data, and Canada housing starts on Wednesday.
Euro rallies to 7-week high vs usd on Greek bailout hopes
The euro climbed to its highest level versus the greenback since December 12th on Tuesday following early reports an agreement on the bailout deal would be put to political leaders for approval on Tuesday before paring intra-day gains as the meeting was postponed to Wednesday.
Earlier in Asia, the single currency traded narrowly before making a quick bounce to 1.3136 after the Reserve Bank of Australia surprised the market by leaving its main cash rate unchanged at 4.25% (forecast 4.00%), price then dropped to a session low at 1.3089. However, buying interest there lifted the single currency to a high at 1.3169 in European morning before ratcheting lower to 1.3096 in European midday.
Later in New York, euro rallied to session high at 1.3270 after news the Greek government is drafting an agreement on the bailout deal to be put to political leaders for approval later on Tuesday, however, price retreated briefly on news the Greek political leaders' meeting on the bailout package was postponed to Wednesday.
The British pound also traded sideways in Asia and rallied in tandem with euro from 1.5789 to 1.5906 in New York. U.K. BRC retail sales fell only 0.3% m/m vs forecast of a 0.8% drop in January.
Federal Reserve Chairman Ben Bernanke said in prepared testimony to Senate 'still a long way to go before labor market operating normally; Fed is concerned there has been a modest increase in the sustainable rate of US unemployment; there is a concern that a very sharp change in the fiscal position in a short time could slow the recovery.'
Versus the Japanese yen, the greenback strengthened from 76.52 following confirmation from the Japan's Ministry of Finance that it used stealth intervention in the last months of 2011 and rose above previous day's 76.80 high to 76.97 before easing.
On the data front, Japan leading indicators for December improved to 93.2 from 90.3. Canada's housing permits increased 11.1% in December vs forecasts of 1.0% rise, November's figure was revised from -3.6% to 2.6%.
German industrial output was much worse-than-expected in December coming in at -2.9% m/m (biggest fall since January 2009) vs forecast of -0.3% and 0.4% y/y vs forecast of 4.3%.
Data to be released Wednesday:
Japan current account and economic watch DI, U.K. BRC shop price index, Switzerland Jobless rate, Germany trade data, and Canada housing starts on Wednesday.
