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Market Review - 01/09/2009 20:36 All times in GMT
Dollar n yen rise on weak equities due to fears of bank failures
The Japanese yen and dollar rose on Tuesday as fears of further U.S. bank failures overshadowed the unexpectedly strong U.S. ISM manufacturing data (52.9 in August, higher than forecast of 50.5), which gave a boost on the two currencies' safe-haven appeal. Global major stock markets tumbled on renewed risk aversion and terribly weak performance on financial stocks as market is worried that U.S. banks will post more losses , the DJI fell 185 points to end at 9310.
The single currency initially recovered to 1.4379 in Asian session after Monday's decline, however, price retreated on the weakness in European equities and then fell sharply as the greenback rose across the board on risk aversion. Active cross buying in yen also pressured the single currency while EUR/JPY fell for the sixth straight day from 134.15 to as low as 131.87.
Similar to euro, sterling also staged a recovery to 1.6376 in European morning and then fell sharply from there on long liquidation and also due to the release of weaker-than-expected U.K. PMI manufacturing data. The index fell to 49.7 in August from a downwardly-revised 50.2 figure in the previous month. Price then dragged by weak equities in U.S. session and extended weakness to as low as 1.6113 before rebound.
Aussie fell against the dollar and the Japanese yen after the Reserve Bank kept its cash target at 3 percent for a fifth month and said the monetary policy 'remains appropriate', damped the expectations for an interest-rate increase. The Australian currency fell to as low as 0.8244 versus the U.S. dollar and 76.73 against the yen respectively in N.Y. afternoon.
Economic data to be released on Wednesday include: Q2 GDP in Australia; PMI construction index in U.K.; GDP and PPI in Eurozone; ADP employment, labour cost, durable goods and factory orders in U.S.. The FOMC meeting minutes last month will be released at 18:00GMT.
Dollar n yen rise on weak equities due to fears of bank failures
The Japanese yen and dollar rose on Tuesday as fears of further U.S. bank failures overshadowed the unexpectedly strong U.S. ISM manufacturing data (52.9 in August, higher than forecast of 50.5), which gave a boost on the two currencies' safe-haven appeal. Global major stock markets tumbled on renewed risk aversion and terribly weak performance on financial stocks as market is worried that U.S. banks will post more losses , the DJI fell 185 points to end at 9310.
The single currency initially recovered to 1.4379 in Asian session after Monday's decline, however, price retreated on the weakness in European equities and then fell sharply as the greenback rose across the board on risk aversion. Active cross buying in yen also pressured the single currency while EUR/JPY fell for the sixth straight day from 134.15 to as low as 131.87.
Similar to euro, sterling also staged a recovery to 1.6376 in European morning and then fell sharply from there on long liquidation and also due to the release of weaker-than-expected U.K. PMI manufacturing data. The index fell to 49.7 in August from a downwardly-revised 50.2 figure in the previous month. Price then dragged by weak equities in U.S. session and extended weakness to as low as 1.6113 before rebound.
Aussie fell against the dollar and the Japanese yen after the Reserve Bank kept its cash target at 3 percent for a fifth month and said the monetary policy 'remains appropriate', damped the expectations for an interest-rate increase. The Australian currency fell to as low as 0.8244 versus the U.S. dollar and 76.73 against the yen respectively in N.Y. afternoon.
Economic data to be released on Wednesday include: Q2 GDP in Australia; PMI construction index in U.K.; GDP and PPI in Eurozone; ADP employment, labour cost, durable goods and factory orders in U.S.. The FOMC meeting minutes last month will be released at 18:00GMT.
