Market Review - 05/04/2014 00:49GMT
Dollar falls broadly on long liquidation after U.S. jobs data missed forecast
The greenback fell against the majority of its peers on Friday as the release of weaker-than-expected U.S. non-farm payrolls boosted speculation that the Federal Reserve would remain accommodative in its monetary policy.
U.S. NFP came in at 192,000, lower than forecast of 200,000 and a revised previous month's figure of 197,000. Unemployment rate remained unchanged at 6.7%.
Versus the Japanese yen, although the greenback traded sideways in Asia and Europe, price briefly rose to an intra-day high at 104.13 immediately after the release of U.S. NFP. However, dollar swiftly fell to 103.56 as traders interpreted the data as not good enough and later dropped to session low at 103.20 in New York afternoon.
The single currency met renewed selling interest at 1.3724 at Asian open and resumed its descent from Thursday to 1.3796 at European open. Price pared its losses and rose briefly to session high at 1.3732 at New York open after the release of U.S. jobs report, however, euro dropped sharply to an intra-day low at 1.3672 in New York morning before recovering.
The British pound spent a lackluster day on Friday and traded sideways in Asia and Europe. Despite edging lower to session low at 1.6554 ahead of U.S. jobs data, price rose to an intra-day high at 1.6606 in New York morning on dollar's weakness. Later, cable retreated to 1.6568 before recovering again in New York afternoon.
In other news, Fed's Fisher said 'at current rate of taper QE3 will terminate in October; forward guidance a complicated monetary tool; calendar-based commitment can be unsound; calendar-based commitments can lead to markekt instability by encouraging overshoot, as some markets appear to be at present; economic models largely guesswork, notes "rabid" focus on FOMC projection; clear to me U.S. has liquidity pool sufficiently deep and wide to finance job-creating capital expansion.'
On the data front, U.K. March Halifax house prices came in at -1.1% m/m n 8.7% 3m/y, vs the forecast of 0.6% n 9.4% respectively.
Data to be released next week :
Japan leading index, Germany industrial production, Swiss CPI, U.K. Lloyds employment changes, EU Sentix investor confidence on Monday. China financial market is closed due to public holiday.
Australia NAB business confidence, Japan current account, Swiss unemployment rate, retail sales, France trade balance, U.K. industrial production, manufacturing production, Canada housing starts, building permits on Tuesday.
Australia consumer confidence, home loans, U.K. shop price index, trade balance, Germany export, import, trade balance wholesale inventories, wholesale sales, FOMC minutes on Wednesday.
New Zealand manufacturing PMI, Australia employment change, unemployment rate, Japan machine orders, machine tool orders, France industrial production, manufacturing production, CPI, HICP, Italy Industrial production, U.K. BoE rate decision, asset purchase target, Canada new house price index, U.S. jobless claims, import price index, monthly budget statement on Thursday.
Japan domestic CGPI, China PPI, CPI , Germany CPI, HICP, France current account, U.S. PPI, U.S. University of Michigan consumer confidence on Friday.
Dollar falls broadly on long liquidation after U.S. jobs data missed forecast
The greenback fell against the majority of its peers on Friday as the release of weaker-than-expected U.S. non-farm payrolls boosted speculation that the Federal Reserve would remain accommodative in its monetary policy.
U.S. NFP came in at 192,000, lower than forecast of 200,000 and a revised previous month's figure of 197,000. Unemployment rate remained unchanged at 6.7%.
Versus the Japanese yen, although the greenback traded sideways in Asia and Europe, price briefly rose to an intra-day high at 104.13 immediately after the release of U.S. NFP. However, dollar swiftly fell to 103.56 as traders interpreted the data as not good enough and later dropped to session low at 103.20 in New York afternoon.
The single currency met renewed selling interest at 1.3724 at Asian open and resumed its descent from Thursday to 1.3796 at European open. Price pared its losses and rose briefly to session high at 1.3732 at New York open after the release of U.S. jobs report, however, euro dropped sharply to an intra-day low at 1.3672 in New York morning before recovering.
The British pound spent a lackluster day on Friday and traded sideways in Asia and Europe. Despite edging lower to session low at 1.6554 ahead of U.S. jobs data, price rose to an intra-day high at 1.6606 in New York morning on dollar's weakness. Later, cable retreated to 1.6568 before recovering again in New York afternoon.
In other news, Fed's Fisher said 'at current rate of taper QE3 will terminate in October; forward guidance a complicated monetary tool; calendar-based commitment can be unsound; calendar-based commitments can lead to markekt instability by encouraging overshoot, as some markets appear to be at present; economic models largely guesswork, notes "rabid" focus on FOMC projection; clear to me U.S. has liquidity pool sufficiently deep and wide to finance job-creating capital expansion.'
On the data front, U.K. March Halifax house prices came in at -1.1% m/m n 8.7% 3m/y, vs the forecast of 0.6% n 9.4% respectively.
Data to be released next week :
Japan leading index, Germany industrial production, Swiss CPI, U.K. Lloyds employment changes, EU Sentix investor confidence on Monday. China financial market is closed due to public holiday.
Australia NAB business confidence, Japan current account, Swiss unemployment rate, retail sales, France trade balance, U.K. industrial production, manufacturing production, Canada housing starts, building permits on Tuesday.
Australia consumer confidence, home loans, U.K. shop price index, trade balance, Germany export, import, trade balance wholesale inventories, wholesale sales, FOMC minutes on Wednesday.
New Zealand manufacturing PMI, Australia employment change, unemployment rate, Japan machine orders, machine tool orders, France industrial production, manufacturing production, CPI, HICP, Italy Industrial production, U.K. BoE rate decision, asset purchase target, Canada new house price index, U.S. jobless claims, import price index, monthly budget statement on Thursday.
Japan domestic CGPI, China PPI, CPI , Germany CPI, HICP, France current account, U.S. PPI, U.S. University of Michigan consumer confidence on Friday.
Recommended Content
Editors’ Picks
EUR/USD rises toward 1.0800 on USD weakness
EUR/USD trades in positive territory above 1.0750 in the second half of the day on Monday. The US Dollar struggles to find demand as investors reassess the Fed's rate outlook following Friday's disappointing labor market data.
GBP/USD closes in on 1.2600 as risk mood improves
Following Friday's volatile action, GBP/USD pushes higher toward 1.2600 on Monday. Soft April jobs report from the US and the improvement seen in risk mood make it difficult for the US Dollar to gather strength.
Gold holds on to modest gains around $2,320
Gold trades decisively higher on the day above $2,320 in the American session. Retreating US Treasury bond yields after weaker-than-expected US employment data and escalating geopolitical tensions help XAU/USD stretch higher.
Addressing the crypto investor dilemma: To invest or not? Premium
Bitcoin price trades around $63,000 with no directional bias. The consolidation has pushed crypto investors into a state of uncertainty. Investors can expect a bullish directional bias above $70,000 and a bearish one below $50,000.
Three fundamentals for the week: Two central bank decisions and one sensitive US Premium
The Reserve Bank of Australia is set to strike a more hawkish tone, reversing its dovish shift. Policymakers at the Bank of England may open the door to a rate cut in June.