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Market Review - 07/09/2009 18:19 All times in GMT
Euro and aussie rise on improved risk appetite; Sterling falls ahead of Thursday's Bank of England rate decision
The euro rose on Monday along with commodity currencies such as the Australian, New Zealand and Canadian dollars following the weekend's G-20 meeting in which finance ministers agreed to maintain their expansionary monetary policy, however, trading volume was relatively thin due to the Labour Day holiday in the U.S. and currency markets were quiet towards the end of the European session.
Euro strengthened from 1.4290 to 1.4363 against the dollar before easing to around 1.4330. The single currency also rallied against the yen to an intra-day high of 133.88 as improved risk appetite (Asian equity markets were boosted by news that the Chinese Government would ease investment limits) lowered demand for safe-haven currencies such as the greenback and yen. German factory orders also increased by more-than-expected on a monthly basis but there was little reaction in the holiday-thinned forex markets. European bourses ended the day in positive territory following last Friday's rise in U.S. equities, as investors were encouraged by the slowing pace of job cuts in the U.S., even though the unemployment rate hit its highest since 1983.
The Australian dollar reached its highest against the greenback since September 2008 at 0.8578 while the New Zealand and Canadian dollars rose to 0.6935 and 1.0740 respectively versus the U.S. currency. Gold remained within striking distance of the US$1,000 per ounce level. The U.S. dollar retreated from 93.31 to 92.82 versus the yen and hit an intra-day low of 1.0555 against the Swiss franc before recovering.
The British pound declined to 1.6326 versus the dollar on Monday after hitting a two-week high at 1.6445 in early European trading due to active cross selling in sterling, with speculation increasing that the Bank of England may pull another surprise move after its meeting ends on Thursday, with rumours going around that the central may cut interest rates from the current level of 0.5% or expand its quantitative easing program (BoE unexpectedly added 50 billion pounds to its asset purchasing scheme last month).
Economic data releases on Tuesday include Japan trade balance and economic watch indicator, Swiss jobless rate, German trade balance and industrial production, U.K. manufacturing and industrial production and Canadian building permits.
Euro and aussie rise on improved risk appetite; Sterling falls ahead of Thursday's Bank of England rate decision
The euro rose on Monday along with commodity currencies such as the Australian, New Zealand and Canadian dollars following the weekend's G-20 meeting in which finance ministers agreed to maintain their expansionary monetary policy, however, trading volume was relatively thin due to the Labour Day holiday in the U.S. and currency markets were quiet towards the end of the European session.
Euro strengthened from 1.4290 to 1.4363 against the dollar before easing to around 1.4330. The single currency also rallied against the yen to an intra-day high of 133.88 as improved risk appetite (Asian equity markets were boosted by news that the Chinese Government would ease investment limits) lowered demand for safe-haven currencies such as the greenback and yen. German factory orders also increased by more-than-expected on a monthly basis but there was little reaction in the holiday-thinned forex markets. European bourses ended the day in positive territory following last Friday's rise in U.S. equities, as investors were encouraged by the slowing pace of job cuts in the U.S., even though the unemployment rate hit its highest since 1983.
The Australian dollar reached its highest against the greenback since September 2008 at 0.8578 while the New Zealand and Canadian dollars rose to 0.6935 and 1.0740 respectively versus the U.S. currency. Gold remained within striking distance of the US$1,000 per ounce level. The U.S. dollar retreated from 93.31 to 92.82 versus the yen and hit an intra-day low of 1.0555 against the Swiss franc before recovering.
The British pound declined to 1.6326 versus the dollar on Monday after hitting a two-week high at 1.6445 in early European trading due to active cross selling in sterling, with speculation increasing that the Bank of England may pull another surprise move after its meeting ends on Thursday, with rumours going around that the central may cut interest rates from the current level of 0.5% or expand its quantitative easing program (BoE unexpectedly added 50 billion pounds to its asset purchasing scheme last month).
Economic data releases on Tuesday include Japan trade balance and economic watch indicator, Swiss jobless rate, German trade balance and industrial production, U.K. manufacturing and industrial production and Canadian building permits.
