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Market Review - 16/09/2009 20:13 All times in GMT
Euro reaches another fresh 2009 high on rallies in equities and commodities
The single currency rose to another fresh 2009 high on Wednesday as strong U.S. data boosted risk appetite, encouraged investors to buy risky assets. U.S. CPI came out at an increase of 0.4% monthly and a decrease of 1.5% year-on year (both better than forecast of 0.3% and –1.7% respectively). Dow Jones Industrial Average Index rallied 108 points to end at 9791, the highest level since October 2008, while oil and gold rallied to $72.30 a barrel and $1020.00 an ounce respectively.
Euro edged higher to 1.4715 in European morning and then retreated on long liquidation and cross selling versus yen and sterling. Price then fell to 1.4642 on dollar-positive U.S. data. However, renewed buying on high-yielding assets gave support to euro and price later rose again to as high as 1.4738 in New York afternoon, another fresh 2009 high.
Cable was led by cross trading against euro in both Asian and European sessions, falling to 1.6431 initially and then rebounded to 1.6530 on short covering, price dipped again to 1.6435 on strong U.S. data but rising equities gave support to sterling and sterling rebounded to 1.6535. The U.K. employment data released earlier was somewhat mixed with claimant count being lower than expected while the ILO unemployment rate hit its highest since 1996.
Dollar fell to as low as 90.12 in European morning in part due to cross buying in yen after incoming Japan Finance Minister Hirohisa Fujii’s comment that a strong yen has merits for the economy. However, price rebound strongly ahead of psychological 90.00 level due to another round of dollar short-covering and U.S. data, price rallied to as high as 91.37 in New York morning before retreating.
Economic data to be released on Thursday includes:
BOJ rate decision, Tankan big manufacturing and all industry index in Japan; retail sales and CBI industrial trend in U.K.; trade balance in Eurozone; CPI in Canada; SNB rate decision in Switzerland; building permits, housing starts, jobless claims and Philadelphia Fed survey in U.S.;
Euro reaches another fresh 2009 high on rallies in equities and commodities
The single currency rose to another fresh 2009 high on Wednesday as strong U.S. data boosted risk appetite, encouraged investors to buy risky assets. U.S. CPI came out at an increase of 0.4% monthly and a decrease of 1.5% year-on year (both better than forecast of 0.3% and –1.7% respectively). Dow Jones Industrial Average Index rallied 108 points to end at 9791, the highest level since October 2008, while oil and gold rallied to $72.30 a barrel and $1020.00 an ounce respectively.
Euro edged higher to 1.4715 in European morning and then retreated on long liquidation and cross selling versus yen and sterling. Price then fell to 1.4642 on dollar-positive U.S. data. However, renewed buying on high-yielding assets gave support to euro and price later rose again to as high as 1.4738 in New York afternoon, another fresh 2009 high.
Cable was led by cross trading against euro in both Asian and European sessions, falling to 1.6431 initially and then rebounded to 1.6530 on short covering, price dipped again to 1.6435 on strong U.S. data but rising equities gave support to sterling and sterling rebounded to 1.6535. The U.K. employment data released earlier was somewhat mixed with claimant count being lower than expected while the ILO unemployment rate hit its highest since 1996.
Dollar fell to as low as 90.12 in European morning in part due to cross buying in yen after incoming Japan Finance Minister Hirohisa Fujii’s comment that a strong yen has merits for the economy. However, price rebound strongly ahead of psychological 90.00 level due to another round of dollar short-covering and U.S. data, price rallied to as high as 91.37 in New York morning before retreating.
Economic data to be released on Thursday includes:
BOJ rate decision, Tankan big manufacturing and all industry index in Japan; retail sales and CBI industrial trend in U.K.; trade balance in Eurozone; CPI in Canada; SNB rate decision in Switzerland; building permits, housing starts, jobless claims and Philadelphia Fed survey in U.S.;
