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Market Review - 02/11/2007 23:28 GMT
Dollar falls versus European currencies on credit concerns despite better-than-expected jobs data
The greenback fell broadly against European currencies on Friday on persistent worries over credit and unreported losses at financial firms despite the release of a strong U.S. payrolls report. The unemployment rate held at 4.7 percent. Interest-rates futures showed a 68% chance that the Fed will cut its target rate again by a quarter-percentage point to 4.25 percent on Dec. 11 from current 4.50%. The U.S. Dollar Index fell to as low as 76.220 on Friday, the weakest since its inception in 1973.
The single currency rallied to a fresh record high of 1.4528 against the dollar on Friday despite the brief retreat to 1.4445 after the release of much stronger-than-expected U.S. non-farm payrolls data. U.S. employers added 166,000 non-farm jobs in October (forecast was 88,000), compared with a downwardly revised 96,000 jobs in September.
U.S. currency rebounded briefly to 115.44 against the Japanese unit on the strong jobs data before falling again in New York on cross unwinding in jpy due to the initial selloff in U.S. stocks. Euro, aussie and sterling retreated briefly after the strong U.S. jobs data versus the Japanese yen from 167.14 to 165.84, from 106.56 to 104.69 and from 240.28 to 238.22 respectively before rebounding in New York as U.S. stocks recovered all the losses and ended up in the day.
Cable rallied to a fresh 26-year high of 2.0897. The greenback fell to a low of 1.1490 before recovering to 1.1575 on renewed cross selling in chf especially versus euro (eur/chf rallied fm 1.6671 to 1.6748). Australian dollar and New Zealand dollar traded in choppy ranges of 0.9126-0.9250 and 0.7579-0.7665 against the U.S. currency respectively. The Canadian dollar also rallied to a fresh record high versus the greenback (usd/cad tumbled to 0.9320) after a report showed the nation's economy added 63,000 jobs in October, five times more than forecast of 11,000, and the unemployment rate fell to a 33-year of 5.8%.
Next week will see the release of Bank of Japan minutes, U.K. PMI, industrial and manufacturing production and U.S. ISM manufacturing on Monday; Japan’s leading indicators, eurozone PMI and retail sales, German factory orders, Canada’s building permits and Ivey PMI on Tuesday; U.K. Nationwide consumer confidence, German industrial production and U.S. wholesale inventories on Wednesday; German’s trade balance and U.S. jobless claims and U.K. leading indicators on Thursday; and Japan’s industrial production, U.K. trade balance, U.S. trade balance and University of Michigan survey. The European Central Bank and the Bank of England are expected to keep its interest rate at 4% and 5.75% respectively on Nov. 8.
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Market Review - 02/11/2007 23:28 GMT
Dollar falls versus European currencies on credit concerns despite better-than-expected jobs data
The greenback fell broadly against European currencies on Friday on persistent worries over credit and unreported losses at financial firms despite the release of a strong U.S. payrolls report. The unemployment rate held at 4.7 percent. Interest-rates futures showed a 68% chance that the Fed will cut its target rate again by a quarter-percentage point to 4.25 percent on Dec. 11 from current 4.50%. The U.S. Dollar Index fell to as low as 76.220 on Friday, the weakest since its inception in 1973.
The single currency rallied to a fresh record high of 1.4528 against the dollar on Friday despite the brief retreat to 1.4445 after the release of much stronger-than-expected U.S. non-farm payrolls data. U.S. employers added 166,000 non-farm jobs in October (forecast was 88,000), compared with a downwardly revised 96,000 jobs in September.
U.S. currency rebounded briefly to 115.44 against the Japanese unit on the strong jobs data before falling again in New York on cross unwinding in jpy due to the initial selloff in U.S. stocks. Euro, aussie and sterling retreated briefly after the strong U.S. jobs data versus the Japanese yen from 167.14 to 165.84, from 106.56 to 104.69 and from 240.28 to 238.22 respectively before rebounding in New York as U.S. stocks recovered all the losses and ended up in the day.
Cable rallied to a fresh 26-year high of 2.0897. The greenback fell to a low of 1.1490 before recovering to 1.1575 on renewed cross selling in chf especially versus euro (eur/chf rallied fm 1.6671 to 1.6748). Australian dollar and New Zealand dollar traded in choppy ranges of 0.9126-0.9250 and 0.7579-0.7665 against the U.S. currency respectively. The Canadian dollar also rallied to a fresh record high versus the greenback (usd/cad tumbled to 0.9320) after a report showed the nation's economy added 63,000 jobs in October, five times more than forecast of 11,000, and the unemployment rate fell to a 33-year of 5.8%.
Next week will see the release of Bank of Japan minutes, U.K. PMI, industrial and manufacturing production and U.S. ISM manufacturing on Monday; Japan’s leading indicators, eurozone PMI and retail sales, German factory orders, Canada’s building permits and Ivey PMI on Tuesday; U.K. Nationwide consumer confidence, German industrial production and U.S. wholesale inventories on Wednesday; German’s trade balance and U.S. jobless claims and U.K. leading indicators on Thursday; and Japan’s industrial production, U.K. trade balance, U.S. trade balance and University of Michigan survey. The European Central Bank and the Bank of England are expected to keep its interest rate at 4% and 5.75% respectively on Nov. 8.
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