Market Review - 12/04/2014 00:57GMT
Dollar steadies on minor short covering ahead of 3-day IMF/World Bank spring meetings
The greenback pared intra-day losses versus its major peers as investors trimmed recent short dollar positions ahead of the 3-day IMF/World Bank spring meetings in Washington which began on Friday.
Although dollar briefly weakened to a fresh 3-week low of 101.32 at Tokyo open, bargain hunting by Japanese importers lifted the pair to 101.87 in Europe. Despite a brief retreat to 101.37, dollar maintained a steady undertone in NY session and last traded at 101.63 near Friday's close.
BOJ governor Kuroda said Japan only halfway through meeting BOJ's price target; told G20 Japan making steady progress toward achieving BOJ's price target with positive economic mechanism working; BOJ ready to adjust monetary policy as needed if achievement of its price target comes under threat.
Euro penetrated Thursday's high of 1.3900 and rose briefly to 1.3906 in European morning on Friday due to dollar's broad-based weakness, however, profit-taking pressured price to 1.3864 in New York morning before rebounding after ECB Governing Council member and Bundesbank President Jens Weidmann downplayed deflation concerns in eurozone.
Weidmann said 'the risk of broad deflation in the eurozone is very low; expects economy in eurozone to pick up n inflation rate to gradually increase; at the ECB we have made clear that we will react effectively to long-term low inflation; in the case of long-term low inflation, any unconventional monetary policy measures by the ECB would have to fulfill many conditions.'
The British pound weakened versus U.S. dollar after the release of lower-than-expected U.K. construction output, which came in at -2.8% and 2.8% versus forecasts of 2.1% and 5.7% respectively, together with the selloff in U.K. equities. FTSE-100 fell by 1.2% whilst Germany's DAX and France's CAC-40 closed down by 1.6% and 1.2% respectively. Cable declined from 1.6787 to 1.6717 on Friday before recovering.
Data to be released next week :
Italy HICP, EU industrial production, U.S. retail sales, business inventories on Monday.
Australia RBA's April minutes, U.K. BRC sales like for like, CPI, RPI, PPI, ONS house price, Germany Zew current situation, survey expectation, EU Zew survey expectation, trade balance, U.S. Empire manufacturing, CPI, Redbook retail sales, Net long term TIC, Total Net TIC, NAHB housing market index, Canada existing home sales on Tuesday.
New Zealand CPI, Australia leading index, China business climate, entrepreneur confidence index, retail sales, Industrial production, GDP, , Italy trade balance, current account, EU CPI, U.K. claimant court, weekly earning, unemployment rate, EU CPI, U.S. housing starts, building permits , industrial capacity utilization, Canada rate decision on Wednesday.
New Zealand consumer confidence, Australia Business confidence, Japan consumer confidence, Germany PPI, EU current account, Canada CPI, U.S. jobless claim, Philadelphia Fed Business outlook on Thursday.
No major economic data is released on Friday. New Zealand, Australia, U.K. Germany, Swiss France, U.S. and Canada financial markets are closed due to Easter Good Friday holiday.
Dollar steadies on minor short covering ahead of 3-day IMF/World Bank spring meetings
The greenback pared intra-day losses versus its major peers as investors trimmed recent short dollar positions ahead of the 3-day IMF/World Bank spring meetings in Washington which began on Friday.
Although dollar briefly weakened to a fresh 3-week low of 101.32 at Tokyo open, bargain hunting by Japanese importers lifted the pair to 101.87 in Europe. Despite a brief retreat to 101.37, dollar maintained a steady undertone in NY session and last traded at 101.63 near Friday's close.
BOJ governor Kuroda said Japan only halfway through meeting BOJ's price target; told G20 Japan making steady progress toward achieving BOJ's price target with positive economic mechanism working; BOJ ready to adjust monetary policy as needed if achievement of its price target comes under threat.
Euro penetrated Thursday's high of 1.3900 and rose briefly to 1.3906 in European morning on Friday due to dollar's broad-based weakness, however, profit-taking pressured price to 1.3864 in New York morning before rebounding after ECB Governing Council member and Bundesbank President Jens Weidmann downplayed deflation concerns in eurozone.
Weidmann said 'the risk of broad deflation in the eurozone is very low; expects economy in eurozone to pick up n inflation rate to gradually increase; at the ECB we have made clear that we will react effectively to long-term low inflation; in the case of long-term low inflation, any unconventional monetary policy measures by the ECB would have to fulfill many conditions.'
The British pound weakened versus U.S. dollar after the release of lower-than-expected U.K. construction output, which came in at -2.8% and 2.8% versus forecasts of 2.1% and 5.7% respectively, together with the selloff in U.K. equities. FTSE-100 fell by 1.2% whilst Germany's DAX and France's CAC-40 closed down by 1.6% and 1.2% respectively. Cable declined from 1.6787 to 1.6717 on Friday before recovering.
Data to be released next week :
Italy HICP, EU industrial production, U.S. retail sales, business inventories on Monday.
Australia RBA's April minutes, U.K. BRC sales like for like, CPI, RPI, PPI, ONS house price, Germany Zew current situation, survey expectation, EU Zew survey expectation, trade balance, U.S. Empire manufacturing, CPI, Redbook retail sales, Net long term TIC, Total Net TIC, NAHB housing market index, Canada existing home sales on Tuesday.
New Zealand CPI, Australia leading index, China business climate, entrepreneur confidence index, retail sales, Industrial production, GDP, , Italy trade balance, current account, EU CPI, U.K. claimant court, weekly earning, unemployment rate, EU CPI, U.S. housing starts, building permits , industrial capacity utilization, Canada rate decision on Wednesday.
New Zealand consumer confidence, Australia Business confidence, Japan consumer confidence, Germany PPI, EU current account, Canada CPI, U.S. jobless claim, Philadelphia Fed Business outlook on Thursday.
No major economic data is released on Friday. New Zealand, Australia, U.K. Germany, Swiss France, U.S. and Canada financial markets are closed due to Easter Good Friday holiday.
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