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Market Review - 20/03/2009 22:30 GMT
The greenback posts its biggest weekly loss in 24 years
The greenback rebounded broadly on Friday on short covering, ending its two straight days of losses after Fed announced on Wednesday to buy up to $1.5 trillion of government and mortgage-backed debt in a bid to cut interest rates and kick-start lending, however, it still suffered its biggest weekly plunge against a basket of currencies since the 1985 Plaza Accord (when G7 central banks agreed to a formal depreciation of the U.S. dollar). In late New York trading, the U.S. dollar index rose 0.78 percent to 83.72 but was down about 4 percent for the week.
On Friday, data showing eurozone industrial output fell in January for a fifth straight month underscored the economy’s woes and euro pared some of its recent gains. The single currency surged to a two-month high of 1.3739 on Thursday but was traded 0.7 percent lower at $1.3576 in late New York session, posting a 5 percent weekly gain against the dollar.
The British pound shed 0.4 percent versus the dollar to around 1.4470 (it had rallied to as high as 1.4598 on Thursday). The greenback rose from Thursday’s lows of 1.1158 and 93.55 versus the Swiss franc and Japanese yen respectively to session highs of 1.1299 and 96.27 on Friday. Over the week, the dollar dropped by 3 percent versus sterling, 5 percent against the Swiss franc and 2.2 percent versus the yen.
Economic data due out in the upcoming week includes Japan BOJ meeting minutes, eurozone trade balance, Canada leading indicators and U.S. existing home sales on Monday, German and eurozone manufacturing PMI, U.K. CPI data and RPI, and U.S. house price index on Tuesday, U.K. CBI distribution trade and U.S. durable good orders on Wednesday, German Gfk index, U.K. retail sales, and U.S. GDP, personal consumption and jobless claims on Thursday, and Japan Tokyo CPI and National CPI, U.K. GDP, and U.S. PCE data on Friday.
The greenback posts its biggest weekly loss in 24 years
The greenback rebounded broadly on Friday on short covering, ending its two straight days of losses after Fed announced on Wednesday to buy up to $1.5 trillion of government and mortgage-backed debt in a bid to cut interest rates and kick-start lending, however, it still suffered its biggest weekly plunge against a basket of currencies since the 1985 Plaza Accord (when G7 central banks agreed to a formal depreciation of the U.S. dollar). In late New York trading, the U.S. dollar index rose 0.78 percent to 83.72 but was down about 4 percent for the week.
On Friday, data showing eurozone industrial output fell in January for a fifth straight month underscored the economy’s woes and euro pared some of its recent gains. The single currency surged to a two-month high of 1.3739 on Thursday but was traded 0.7 percent lower at $1.3576 in late New York session, posting a 5 percent weekly gain against the dollar.
The British pound shed 0.4 percent versus the dollar to around 1.4470 (it had rallied to as high as 1.4598 on Thursday). The greenback rose from Thursday’s lows of 1.1158 and 93.55 versus the Swiss franc and Japanese yen respectively to session highs of 1.1299 and 96.27 on Friday. Over the week, the dollar dropped by 3 percent versus sterling, 5 percent against the Swiss franc and 2.2 percent versus the yen.
Economic data due out in the upcoming week includes Japan BOJ meeting minutes, eurozone trade balance, Canada leading indicators and U.S. existing home sales on Monday, German and eurozone manufacturing PMI, U.K. CPI data and RPI, and U.S. house price index on Tuesday, U.K. CBI distribution trade and U.S. durable good orders on Wednesday, German Gfk index, U.K. retail sales, and U.S. GDP, personal consumption and jobless claims on Thursday, and Japan Tokyo CPI and National CPI, U.K. GDP, and U.S. PCE data on Friday.
