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Market Review - 07/11/2008 23:55 GMT
Dollar drops broadly against major currencies except yen due to highest U.S. jobless rate since 1994
The greenback fell against major currencies except the Japanese yen on Friday as the U.S. unemployment rate climbed to 6.5%, the highest level since 1994, however, U.S. currency pared losses on speculation of further global interest rate cuts.
U.S. non-farm payrolls showed 240,000 jobs were lost in October (forecast was 200,000) after the downwardly-revised 284,000 jobs cut in September. The unemployment rate increased to 6.5% from 6.1%. Interest-rate futures on Friday showed a 99% chance the Fed will cut its target rate by 50 basis points from 1.00% to 0.50% at its December 16 meeting.
President-elect Barack Obama said the United States was facing one of its greatest economic challenges and vowed to confront the crisis head-on as soon as he takes office in January. He wanted Congress to pass another stimulus package as soon as possible to stabilise the U.S. economy.
Former U.S. Federal Reserve Chairman Alan Greenspan said on Friday that U.S. gross domestic product will drop sharply in the fourth quarter but hard-hit housing prices may start to stabilise in the first half of next year.
The single currency rose from 1.2653 to 1.2851 against the dollar and closed at 1.2720 due to the late rally in U.S. stock markets. The British pound strengthened from 1.5535 to 1.5880 before closing at 1.5641. Usd/jpy gained from 96.75 to 98.70 on renewed cross selling in jpy. Australian dollar and New Zealand rebounded against the U.S. currency from 0.6545 to 0.6789 and from 0.5790 to 0.5930 respectively.
Dow Jones industrial average jumped up by 248 points or 2.85% to end at 8943.89. The Standard & Poor’s 500 index rose by 25.87 points or 2.86% to finish at 930.75. The Nasdaq Composite index gained by 38.70 points or 2.41% to close at 1647.40.
U.S. currency fell briefly against the Canadian dollar from 1.2025 to 1.1668 after the release of Canada’s jobs report which showed that the nation's employers unexpectedly added 9,500 jobs in October versus the expectation of a 10,000 decrease.
Next week will see the release of Japan’s machine orders and U.K. PPI on Monday; Japan’s trade balance and current account, U.K. RICS house prices, German WPI, U.K. trade balance, German and eurozone ZEW index on Tuesday; Japan’s consumer confidence, U.K. claimant count and ILO unemployment rate, eurozone industrial production on Wednesday; German GDP deflator, U.S. trade balance and jobless claims on Thursday; German CPI, eurozone GDP, U.S. retail sales, University of Michigan survey and business inventories on Friday.
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AceTrader M-T-D Intra-Day performance summary (as of 9 Nov)
USD/JPY +28 | EUR/USD +83 | USD/CHF -92 | GBP/USD +204 |
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Dollar drops broadly against major currencies except yen due to highest U.S. jobless rate since 1994
The greenback fell against major currencies except the Japanese yen on Friday as the U.S. unemployment rate climbed to 6.5%, the highest level since 1994, however, U.S. currency pared losses on speculation of further global interest rate cuts.
U.S. non-farm payrolls showed 240,000 jobs were lost in October (forecast was 200,000) after the downwardly-revised 284,000 jobs cut in September. The unemployment rate increased to 6.5% from 6.1%. Interest-rate futures on Friday showed a 99% chance the Fed will cut its target rate by 50 basis points from 1.00% to 0.50% at its December 16 meeting.
President-elect Barack Obama said the United States was facing one of its greatest economic challenges and vowed to confront the crisis head-on as soon as he takes office in January. He wanted Congress to pass another stimulus package as soon as possible to stabilise the U.S. economy.
Former U.S. Federal Reserve Chairman Alan Greenspan said on Friday that U.S. gross domestic product will drop sharply in the fourth quarter but hard-hit housing prices may start to stabilise in the first half of next year.
The single currency rose from 1.2653 to 1.2851 against the dollar and closed at 1.2720 due to the late rally in U.S. stock markets. The British pound strengthened from 1.5535 to 1.5880 before closing at 1.5641. Usd/jpy gained from 96.75 to 98.70 on renewed cross selling in jpy. Australian dollar and New Zealand rebounded against the U.S. currency from 0.6545 to 0.6789 and from 0.5790 to 0.5930 respectively.
Dow Jones industrial average jumped up by 248 points or 2.85% to end at 8943.89. The Standard & Poor’s 500 index rose by 25.87 points or 2.86% to finish at 930.75. The Nasdaq Composite index gained by 38.70 points or 2.41% to close at 1647.40.
U.S. currency fell briefly against the Canadian dollar from 1.2025 to 1.1668 after the release of Canada’s jobs report which showed that the nation's employers unexpectedly added 9,500 jobs in October versus the expectation of a 10,000 decrease.
Next week will see the release of Japan’s machine orders and U.K. PPI on Monday; Japan’s trade balance and current account, U.K. RICS house prices, German WPI, U.K. trade balance, German and eurozone ZEW index on Tuesday; Japan’s consumer confidence, U.K. claimant count and ILO unemployment rate, eurozone industrial production on Wednesday; German GDP deflator, U.S. trade balance and jobless claims on Thursday; German CPI, eurozone GDP, U.S. retail sales, University of Michigan survey and business inventories on Friday.
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AceTrader M-T-D Intra-Day performance summary (as of 9 Nov)
USD/JPY +28 | EUR/USD +83 | USD/CHF -92 | GBP/USD +204 |
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