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Market Review - 09/10/2009 22:20 All times in GMT
The greenback rises broadly on Ben Bernanke's dollar-positive comments
The greenback rebounded versus a basket of currencies on Friday as Federal Reserve Chairman Ben S. Bernanke said the Fed will need to tighten monetary policy to prevent the emergence of an inflation problem down the road as economic recovery takes hold. The U.S. currency rallied against the Japanese yen to 89.90 in late New York although the dollar declined to 88.65 earlier in late European trade partly due to cross buying in yen. The ICE futures U.S. dollar index, which tracks the greenback against a basket of six major currencies, bounced off from Thursday's 14-month low of 75.767 and closed at 76.350.
Euro initially fell to 1.4704 in Asian morning after Bernanke's hawkish comments but later recovered to 1.4774 in New York afternoon, however, the pair then dropped sharply to 1.4674 before another rebound took place partly due to the rise in U.S. stocks. DJI ended 78.07 points higher, reaching its highest level in a year at 9864.94.
The British pound tumbled against the greenback on Friday after Bernanke's hawkish remarks on dollar. In addition, market expectations that Britain will be the last amongst major countries to withdraw its extremely easy monetary policy due to its poor economic performance also put extra pressure on sterling. Although cable rebounded briefly in European session after data showing U.K. output prices surprisingly turned positive and a slightly narrowing in the trade deficit, selling interest at 1.6005/07 capped the pair's upside and price later tumbled to as low as 1.5825 in New York afternoon. Cross selling on the pound versus euro also weighed on cable as eur/gbp rallied from 0.9185 to this week's 0.9296 high.
Monday will be holiday in Japan and Canada. Data to be released next week will be German WPI on Monday, New Zealand retail sales, U.K. RICS house price, BRC retail sales, Australia NAB business confidence, Switzerland PPI, U.K. CPI, RPI, German Zew index, Canada new housing price index on Tuesday, Japan domestic CGPI, consumer confidence, BoJ rate decision, U.K. claimant count, ILO unemployment rate, average earnings, eurozone industrial production, U.S. retail sales, business inventories, FOMC minutes on Wednesday, New Zealand CPI, Japan industrial production, capacity utilisation, Switzerland ZEW index, eurozone HICP, U.S. CPI, jobless claims, empire state index, Philadelphia Fed survey on Thursday, Switzerland retail sales, eurozone trade balance, Canada CPI, U.S. foreign treasury buys, industrial production and University of Michigan survey on Friday.
The greenback rises broadly on Ben Bernanke's dollar-positive comments
The greenback rebounded versus a basket of currencies on Friday as Federal Reserve Chairman Ben S. Bernanke said the Fed will need to tighten monetary policy to prevent the emergence of an inflation problem down the road as economic recovery takes hold. The U.S. currency rallied against the Japanese yen to 89.90 in late New York although the dollar declined to 88.65 earlier in late European trade partly due to cross buying in yen. The ICE futures U.S. dollar index, which tracks the greenback against a basket of six major currencies, bounced off from Thursday's 14-month low of 75.767 and closed at 76.350.
Euro initially fell to 1.4704 in Asian morning after Bernanke's hawkish comments but later recovered to 1.4774 in New York afternoon, however, the pair then dropped sharply to 1.4674 before another rebound took place partly due to the rise in U.S. stocks. DJI ended 78.07 points higher, reaching its highest level in a year at 9864.94.
The British pound tumbled against the greenback on Friday after Bernanke's hawkish remarks on dollar. In addition, market expectations that Britain will be the last amongst major countries to withdraw its extremely easy monetary policy due to its poor economic performance also put extra pressure on sterling. Although cable rebounded briefly in European session after data showing U.K. output prices surprisingly turned positive and a slightly narrowing in the trade deficit, selling interest at 1.6005/07 capped the pair's upside and price later tumbled to as low as 1.5825 in New York afternoon. Cross selling on the pound versus euro also weighed on cable as eur/gbp rallied from 0.9185 to this week's 0.9296 high.
Monday will be holiday in Japan and Canada. Data to be released next week will be German WPI on Monday, New Zealand retail sales, U.K. RICS house price, BRC retail sales, Australia NAB business confidence, Switzerland PPI, U.K. CPI, RPI, German Zew index, Canada new housing price index on Tuesday, Japan domestic CGPI, consumer confidence, BoJ rate decision, U.K. claimant count, ILO unemployment rate, average earnings, eurozone industrial production, U.S. retail sales, business inventories, FOMC minutes on Wednesday, New Zealand CPI, Japan industrial production, capacity utilisation, Switzerland ZEW index, eurozone HICP, U.S. CPI, jobless claims, empire state index, Philadelphia Fed survey on Thursday, Switzerland retail sales, eurozone trade balance, Canada CPI, U.S. foreign treasury buys, industrial production and University of Michigan survey on Friday.
