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Market Review - 25/06/2009 18:51
All times in GMT
Greenback erases earlier gains as investors seek for more hints on economic outlook
U.S. dollar was mixed on Thursday as investors stayed sidelined and were seeking for more hints on global economic outlook. The greenback lacked direction and moved inconsistently versus it's major counterparts. U.S. data showed that Q1 GDP fell by less than forecast (-5.5% vs forecast -5.7%) while weekly jobless claims unexpectedly climbed to 627k vs forecast of 600k.
Although euro remained under pressure in Asian & European sessions and fell to as low as 1.3889 after the release of the weak U.S. jobless claims data which raised investors concern on the U.S. economic recovery, price rebounded above 1.4000 level as the rise in the Dow (index closed up 172 points) prompted traders to liquidate their short positions. On cross trading, Euro rose briefly to 1.5382 against the Swiss Franc after traders said SNB intervened twice to weaken its currency, as usual, the SNB made no comment on the currency moves.
Cable met selling pressure in Asia & Europe, hitting an intra-day low of 1.6231 on active cross selling especially versus yen (due to unwinding of carry trades after realease of U.S. data) before rebounding on short-covering after investors digested the data. Sterling recovered to around 157 yen after early selloff to as low as 155.95. The strong performance in the Dow also revive buying interest in the risky assets.
Earlier in Asia, dollar rose against the Japanese yen initially to 96.58 after Japan's Finance minister Yosano said 'strong dollar is in interest of U.S. and countries across the world' but retreated to 95.72 in late New York trading due to intra-day dollar's broad-based weakness.
The Dow rose sharply after the latest U.S. Treasury auction garnered strong demand, pressuring U.S. bond and bill rates. The auction of $27 billion of 7-year notes completed this week's sales of Treasury coupons, with all three auctions seeing solid demand. Dow index rallied 2% to 8,472 while S&P 500 and NASDAQ rose to 920 and 1,829 respectively.
Economic data to be released on Friday includes :
Q1 GDP of New Zealand; national and Tokyo CPI of Japan; import price index of Germany; Consumer confidence, PCE index, personal income/spending and, University of Michigan survey index of the U.S..
Greenback erases earlier gains as investors seek for more hints on economic outlook
U.S. dollar was mixed on Thursday as investors stayed sidelined and were seeking for more hints on global economic outlook. The greenback lacked direction and moved inconsistently versus it's major counterparts. U.S. data showed that Q1 GDP fell by less than forecast (-5.5% vs forecast -5.7%) while weekly jobless claims unexpectedly climbed to 627k vs forecast of 600k.
Although euro remained under pressure in Asian & European sessions and fell to as low as 1.3889 after the release of the weak U.S. jobless claims data which raised investors concern on the U.S. economic recovery, price rebounded above 1.4000 level as the rise in the Dow (index closed up 172 points) prompted traders to liquidate their short positions. On cross trading, Euro rose briefly to 1.5382 against the Swiss Franc after traders said SNB intervened twice to weaken its currency, as usual, the SNB made no comment on the currency moves.
Cable met selling pressure in Asia & Europe, hitting an intra-day low of 1.6231 on active cross selling especially versus yen (due to unwinding of carry trades after realease of U.S. data) before rebounding on short-covering after investors digested the data. Sterling recovered to around 157 yen after early selloff to as low as 155.95. The strong performance in the Dow also revive buying interest in the risky assets.
Earlier in Asia, dollar rose against the Japanese yen initially to 96.58 after Japan's Finance minister Yosano said 'strong dollar is in interest of U.S. and countries across the world' but retreated to 95.72 in late New York trading due to intra-day dollar's broad-based weakness.
The Dow rose sharply after the latest U.S. Treasury auction garnered strong demand, pressuring U.S. bond and bill rates. The auction of $27 billion of 7-year notes completed this week's sales of Treasury coupons, with all three auctions seeing solid demand. Dow index rallied 2% to 8,472 while S&P 500 and NASDAQ rose to 920 and 1,829 respectively.
Economic data to be released on Friday includes :
Q1 GDP of New Zealand; national and Tokyo CPI of Japan; import price index of Germany; Consumer confidence, PCE index, personal income/spending and, University of Michigan survey index of the U.S..
