Market Review - 19/07/2014 01:41GMT
Euro falls to 5-month low on risk aversion
The single currency fell to a fresh 5-month low against the greenback on Friday as increased geopolitical tension after Thursday's Malaysian airlines crash triggered risk aversion.
Although the single currency traded sideways in Asia and edged higher to session high at 1.3536 in European morning, price met renewed selling and extend its recent losing streak to 1.3491 in New York morning. Later, euro pared its losses and staged a recovery to 1.3531 in New York afternoon before stabilizing.
Versus the Japanese yen, although the greenback fell to an intra-day low at 101.09 in Australia, price pared its losses and rose to 101.41 in Asian morning and then higher to an intra-day high at 101.45 in European morning. Later, dollar briefly retreated to 101.28 at New York open before recovering to 101.44 in New York morning.
The British pound traded with a firm bias in Asia and strengthened to session high at 1.7118 in European morning before tumbling to an intra-day low at 1.7037 in New York morning on risk aversion. However, cable pared its losses and rebounded to 1.7094 in New York afternoon.
In other news, ECB's Jens Weidmann said 'ultra-loose ECB policy poses a risk in the long-term financial stability; sees danger of exaggerations on asset n real estate mkts; must make clear ECB will not put off a necessary rise in rates out of consideration for public finances; sees danger low rates will be used not to consolidate gov't budgets, but to finance more spending; monetary policy has done its put twds maintaining price stability.'
On the data front, Euro zone May non s/a current account balance 8.9 bln euros vs balance of 18.8 bln euros in Apr. U. of Michigan consumer sentiment came in at 81.3, lower than forecast of 83.0.
Data to be released next week:
Japan market holiday, UK house prices, Germany PPI, Italy industrial sales and industrial orderson Monday.
China leading index, Japan leading index, Swiss trade balance, UK PSNB, PSNCR, CBI trends, U.S. CPI, core CPI, Redbook retail sales, home price and existing home sales on Tuesday.
Australia CPI, France business climate, UK BoE minutes, BBA mortgage approvals, Italy trade balance, Canada retail sales and EU consumer confidence on Wednesday.
NZ RBNZ rate decision, trade balance, imports, exports, Japan exports, imports, manufacturing PMI, China HSBC manufacturing PMI, France manufacturing PMI, services PMI, Germany manufacturing PMI, services PMI, EU manufacturing PMI, services PMI, Italy retail sales, UK retail sales, U.S. jobless claims, manufacturing PMI and new home sales on Thursday.
Japan National CPI, Tokyo CPI, Germany Gfk consumer confidence, Ifo current conditions, expectations, business climate, Italy unemployment, UK GDP and U.S. durable goods on Friday.
Euro falls to 5-month low on risk aversion
The single currency fell to a fresh 5-month low against the greenback on Friday as increased geopolitical tension after Thursday's Malaysian airlines crash triggered risk aversion.
Although the single currency traded sideways in Asia and edged higher to session high at 1.3536 in European morning, price met renewed selling and extend its recent losing streak to 1.3491 in New York morning. Later, euro pared its losses and staged a recovery to 1.3531 in New York afternoon before stabilizing.
Versus the Japanese yen, although the greenback fell to an intra-day low at 101.09 in Australia, price pared its losses and rose to 101.41 in Asian morning and then higher to an intra-day high at 101.45 in European morning. Later, dollar briefly retreated to 101.28 at New York open before recovering to 101.44 in New York morning.
The British pound traded with a firm bias in Asia and strengthened to session high at 1.7118 in European morning before tumbling to an intra-day low at 1.7037 in New York morning on risk aversion. However, cable pared its losses and rebounded to 1.7094 in New York afternoon.
In other news, ECB's Jens Weidmann said 'ultra-loose ECB policy poses a risk in the long-term financial stability; sees danger of exaggerations on asset n real estate mkts; must make clear ECB will not put off a necessary rise in rates out of consideration for public finances; sees danger low rates will be used not to consolidate gov't budgets, but to finance more spending; monetary policy has done its put twds maintaining price stability.'
On the data front, Euro zone May non s/a current account balance 8.9 bln euros vs balance of 18.8 bln euros in Apr. U. of Michigan consumer sentiment came in at 81.3, lower than forecast of 83.0.
Data to be released next week:
Japan market holiday, UK house prices, Germany PPI, Italy industrial sales and industrial orderson Monday.
China leading index, Japan leading index, Swiss trade balance, UK PSNB, PSNCR, CBI trends, U.S. CPI, core CPI, Redbook retail sales, home price and existing home sales on Tuesday.
Australia CPI, France business climate, UK BoE minutes, BBA mortgage approvals, Italy trade balance, Canada retail sales and EU consumer confidence on Wednesday.
NZ RBNZ rate decision, trade balance, imports, exports, Japan exports, imports, manufacturing PMI, China HSBC manufacturing PMI, France manufacturing PMI, services PMI, Germany manufacturing PMI, services PMI, EU manufacturing PMI, services PMI, Italy retail sales, UK retail sales, U.S. jobless claims, manufacturing PMI and new home sales on Thursday.
Japan National CPI, Tokyo CPI, Germany Gfk consumer confidence, Ifo current conditions, expectations, business climate, Italy unemployment, UK GDP and U.S. durable goods on Friday.
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