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Market Review - 04/11/2008 22:19 GMT
Euro rallies broadly and Japanese yen drops on renewed risk appetite
The single currency rallied versus the greenback on renewed risk appetite on Tuesday, posting its biggest one-day gain since 1999. Euro rose sharply from 1.2527 to 1.3049 and from 123.43 to 130.98 against the U.S. currency and Japanese yen respectively. The U.S. dollar retreated versus the yen from 100.56 to 98.35.
Volume was light on Tuesday as investors are focusing on the U.S. Presidential election. Global stock markets continued to rise as investors are expecting further interest rate cuts and that a credit market thaw would revive world growth. The Dow Jones industrial average index rose 305 points or 3.28% to 9625. The Nasdaq Composite index jumped 53 points or 3.12% to 1780. The Standard & Poor’s 500 index gained 39.45 points or 4.08% to 1005.75.
The Reserve Bank of Australia cut interest rate aggressively by 75 basis points instead of the widely expected 50 basis points cut on Tuesday, adding to speculation that the Bank of England and European Central bank will decrease interest rates further to stimulate their respective economies. Australian dollar fell briefly to 0.6603 versus U.S. currency after the surprise rate cut and then rallied to 0.7015. Australian dollar rose sharply versus the Japanese yen from 65.02 to 70.51.
The British pound rose strongly from 1.5602 to 1.6110. Sterling strengthened against the Japanese currency from 153.79 to 161.72 while euro rallied versus sterling from 0.7973 to 0.8147 as U.K. PMI construction in October dropped to 35.1 from 38.8, suggesting Britain's construction industry contracted at the fastest pace in more than a decade.
U.S. crude oil futures jumped by $6.62 or 10.4% to settle at $70.53 per a barrel on signals that OPEC members were cutting output to comply with the group’s recent decision. The increase in crude oil prices eased recent global credit concerns and supported the single currency.
Wednesday will see the release of U.K. Nationwide consumer confidence, German and eurozone services PMI respectively, U.K. industrial and manufacturing production, eurozone retail sales, U.S. ADP employment and ISM non-manufacturing.
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AceTrader M-T-D Intra-Day performance summary (as of 4 Nov)
USD/JPY -73 | EUR/USD -12 | USD/CHF +43 | GBP/USD +170 |
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Euro rallies broadly and Japanese yen drops on renewed risk appetite
The single currency rallied versus the greenback on renewed risk appetite on Tuesday, posting its biggest one-day gain since 1999. Euro rose sharply from 1.2527 to 1.3049 and from 123.43 to 130.98 against the U.S. currency and Japanese yen respectively. The U.S. dollar retreated versus the yen from 100.56 to 98.35.
Volume was light on Tuesday as investors are focusing on the U.S. Presidential election. Global stock markets continued to rise as investors are expecting further interest rate cuts and that a credit market thaw would revive world growth. The Dow Jones industrial average index rose 305 points or 3.28% to 9625. The Nasdaq Composite index jumped 53 points or 3.12% to 1780. The Standard & Poor’s 500 index gained 39.45 points or 4.08% to 1005.75.
The Reserve Bank of Australia cut interest rate aggressively by 75 basis points instead of the widely expected 50 basis points cut on Tuesday, adding to speculation that the Bank of England and European Central bank will decrease interest rates further to stimulate their respective economies. Australian dollar fell briefly to 0.6603 versus U.S. currency after the surprise rate cut and then rallied to 0.7015. Australian dollar rose sharply versus the Japanese yen from 65.02 to 70.51.
The British pound rose strongly from 1.5602 to 1.6110. Sterling strengthened against the Japanese currency from 153.79 to 161.72 while euro rallied versus sterling from 0.7973 to 0.8147 as U.K. PMI construction in October dropped to 35.1 from 38.8, suggesting Britain's construction industry contracted at the fastest pace in more than a decade.
U.S. crude oil futures jumped by $6.62 or 10.4% to settle at $70.53 per a barrel on signals that OPEC members were cutting output to comply with the group’s recent decision. The increase in crude oil prices eased recent global credit concerns and supported the single currency.
Wednesday will see the release of U.K. Nationwide consumer confidence, German and eurozone services PMI respectively, U.K. industrial and manufacturing production, eurozone retail sales, U.S. ADP employment and ISM non-manufacturing.
***********************************************************************************
AceTrader M-T-D Intra-Day performance summary (as of 4 Nov)
USD/JPY -73 | EUR/USD -12 | USD/CHF +43 | GBP/USD +170 |
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