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Market Review - 28/08/2008 21:42 GMTDollar strengthens versus euro on robust U.S. GDP data
The greenback rose against the euro and climbed to a 2-year high versus
the British pound on Thursday, buoyed by robust data showing that the
U.S. economy grew at a faster pace in the second quarter than first
reported. The dollar also trimmed its losses versus Japanese yen due to
a rally in U.S. stock markets, which led by industrial and financial
companies and a decline in oil prices.
According to Thursday's report, the U.S. gross domestic production grew at a 3.3 percent annual rate in the second quarter compared with the forecast of 1.9 percent, bolstered by consumer spending and exports. The report prompted investors to buy back the dollar, with the greenback also supported by the rally in U.S. stock markets and the fall in oil prices midway through the New York session. The Dow Jones Index rose more than 1.85 percent and ended up 212 points to 11,715 whilst crude oil prices for October delivery closed $2.52 lower per barrel to $115.63 by the end of New York session.
The dollar index was up more that 0.1 percent at 77.150, near the 2008 high of 77.619 hit earlier this week while the greenback also rebounded from its session low of 108.78 versus the Japanese yen to 109.50. The dollar strengthened versus the signal currency soon after the release of U.S. data and rose from its intra-day low of 1.4812 to 1.4671.
Data from the U.K kept sterling under pressure on Thursday as house prices in August reported the biggest annual price fall for 17 years while retail sales posted the steepest drop since records began a quarter of a century ago. The British pound dropped to a new two-year low of 1.8240 against the dollar and 0.8061 versus the euro before rebounding in late U.S. session, ending at 1.8295 and 0.8038 respectively at New York closing.
In other currencies, the Australian dollar and the South African rand were the best performers against the U.S. dollar on Thursday. The aussie rose to as high as 0.8694 after the Bureau of Statistics said second-quarter capital spending increased 5.7 percent. South Africa's rand climbed for a second straight day to 7.7270 versus the dollar as precious metals advanced, which accounted for the largest exports of its nation. The spot gold rose 0.9 percent to $834.20 an ounce while platinum added 2.3 percent to $1,476 an ounce.
On Friday, economic data releases include U.K. Gfk survey, Japan Manufacturing PMI, household spending, National CPI, Tokyo CPI, unemployment rate, industrial production, retail sales, construction orders and housing starts, eurozone’s HICP flash, unemployment rate, business climate and economic sentiment, Switzerland KOF indicator, U.S. core PCE and PCE index, personal income and spending, Chicago PMI and the University of Michigan survey.
Market Review - 28/08/2008 21:42 GMT
Dollar strengthens versus euro on robust U.S. GDP data
The greenback rose against the euro and climbed to a 2-year high versus
the British pound on Thursday, buoyed by robust data showing that the
U.S. economy grew at a faster pace in the second quarter than first
reported. The dollar also trimmed its losses versus Japanese yen due to
a rally in U.S. stock markets, which led by industrial and financial
companies and a decline in oil prices. According to Thursday's report, the U.S. gross domestic production grew at a 3.3 percent annual rate in the second quarter compared with the forecast of 1.9 percent, bolstered by consumer spending and exports. The report prompted investors to buy back the dollar, with the greenback also supported by the rally in U.S. stock markets and the fall in oil prices midway through the New York session. The Dow Jones Index rose more than 1.85 percent and ended up 212 points to 11,715 whilst crude oil prices for October delivery closed $2.52 lower per barrel to $115.63 by the end of New York session.
The dollar index was up more that 0.1 percent at 77.150, near the 2008 high of 77.619 hit earlier this week while the greenback also rebounded from its session low of 108.78 versus the Japanese yen to 109.50. The dollar strengthened versus the signal currency soon after the release of U.S. data and rose from its intra-day low of 1.4812 to 1.4671.
Data from the U.K kept sterling under pressure on Thursday as house prices in August reported the biggest annual price fall for 17 years while retail sales posted the steepest drop since records began a quarter of a century ago. The British pound dropped to a new two-year low of 1.8240 against the dollar and 0.8061 versus the euro before rebounding in late U.S. session, ending at 1.8295 and 0.8038 respectively at New York closing.
In other currencies, the Australian dollar and the South African rand were the best performers against the U.S. dollar on Thursday. The aussie rose to as high as 0.8694 after the Bureau of Statistics said second-quarter capital spending increased 5.7 percent. South Africa's rand climbed for a second straight day to 7.7270 versus the dollar as precious metals advanced, which accounted for the largest exports of its nation. The spot gold rose 0.9 percent to $834.20 an ounce while platinum added 2.3 percent to $1,476 an ounce.
On Friday, economic data releases include U.K. Gfk survey, Japan Manufacturing PMI, household spending, National CPI, Tokyo CPI, unemployment rate, industrial production, retail sales, construction orders and housing starts, eurozone’s HICP flash, unemployment rate, business climate and economic sentiment, Switzerland KOF indicator, U.S. core PCE and PCE index, personal income and spending, Chicago PMI and the University of Michigan survey.
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