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Market Review - 02/09/2009 21:06 All times in GMT
Dollar falls broadly due to weak employment data
The greenback declined broadly on Wednesday as weaker-than-expected ADP employment data raised concerns on U.S. economic recovery. Companies eliminated 298,000 workers in August (worse than forecast of 250,000 cut) after a revised drop of 360,000 in the previous month. However, the meeting minutes of FOMC in August stated that the U.S. economy recession is coming to an end and a recovery is expected in the second half of 2009.
The single currency traded sideways in Asian session and fell to around 1.4190 in U.S. morning due to active cross selling versus sterling and yen, however, buying interest lifted euro from there on short-covering and greenback's weakness and price rebounded to session high at 1.4295 later in the day.
The British pound dipped to as low as 1.6114 in European morning, however, short-covering gave support to sterling and price rebounded from there after the release of U.K. construction PMI data (figure in August increased to 47.7 fm 47.0 the previous month, versus forecast of 48.0). Cross-buying on sterling versus euro also helped price to edge higher in U.S. afternoon to 1.6300 before retreat.
The Australian currency climbed versus most of its major counterparts as the nation’s economic growth unexpectedly accelerated in the second quarter. GDP showed an increase of 0.6% both quarterly and yearly (beat the forecast of 0.2% and 0.3% respectively). Aussie rose to as high as 0.8374 in U.S. afternoon before easing.
FOMC meeting minutes in August stated that the U.S. economy continued to recover from the bottom and foreign countries' recovery would stimulate the U.S. export. However, uncertainties remained (like the willingness of local people spending).
Gold rose the most in more than five months as decline in global equities and weak dollar spurred demand for the precious metal as an alternative investment. Gold rallied to as high as 979.80 in late New York session.
Economic data to be released on Thursday include:
Service PMI in Germany, U.K. and Eurozone; retail sales in Eurozone; Jobless claims and ISM non-manufacturing in United States. ECB will make rate decision at 11:45GMT.
Dollar falls broadly due to weak employment data
The greenback declined broadly on Wednesday as weaker-than-expected ADP employment data raised concerns on U.S. economic recovery. Companies eliminated 298,000 workers in August (worse than forecast of 250,000 cut) after a revised drop of 360,000 in the previous month. However, the meeting minutes of FOMC in August stated that the U.S. economy recession is coming to an end and a recovery is expected in the second half of 2009.
The single currency traded sideways in Asian session and fell to around 1.4190 in U.S. morning due to active cross selling versus sterling and yen, however, buying interest lifted euro from there on short-covering and greenback's weakness and price rebounded to session high at 1.4295 later in the day.
The British pound dipped to as low as 1.6114 in European morning, however, short-covering gave support to sterling and price rebounded from there after the release of U.K. construction PMI data (figure in August increased to 47.7 fm 47.0 the previous month, versus forecast of 48.0). Cross-buying on sterling versus euro also helped price to edge higher in U.S. afternoon to 1.6300 before retreat.
The Australian currency climbed versus most of its major counterparts as the nation’s economic growth unexpectedly accelerated in the second quarter. GDP showed an increase of 0.6% both quarterly and yearly (beat the forecast of 0.2% and 0.3% respectively). Aussie rose to as high as 0.8374 in U.S. afternoon before easing.
FOMC meeting minutes in August stated that the U.S. economy continued to recover from the bottom and foreign countries' recovery would stimulate the U.S. export. However, uncertainties remained (like the willingness of local people spending).
Gold rose the most in more than five months as decline in global equities and weak dollar spurred demand for the precious metal as an alternative investment. Gold rallied to as high as 979.80 in late New York session.
Economic data to be released on Thursday include:
Service PMI in Germany, U.K. and Eurozone; retail sales in Eurozone; Jobless claims and ISM non-manufacturing in United States. ECB will make rate decision at 11:45GMT.
