Market Review - 18/09/2014 22:26GMT
Dollar falls broadly on profit-taking
Although U.S. dollar extended rally to a fresh 6-year 108.96 vs yen on Thursday following Wednesday's release of Fed's policy statement . Euro dropped briefly to a fresh 14-month low at 1.2834 in Australian morning before rebounding strongly to 1.2911 after the release of results of ECB TLTRO operation as ECB allotted 82.60 billion euros which was less then market expectation of 100-150 billion euros in its TLTRO operation. Euro retreated briefly to 1.2857 in New York morning after the release of better-than-expected U.S. jobless claims data but only to rise to 1.2928.
U.S. jobless claims came in better-than-expected at 280,000 versus forecast of 305,000 and previous revised figure of 316,000.
ECB's Praet said "markets have understood that Jun/Sep measures shud be seen in combination; measures can only be addressed once fully implemented; Jun/Sep stimulus measures will have sizeable impact on ECB's balance sheet; ECB ready to use additional unconventional instruments within its mandate if necessary."
BoJ's Kuroda said "Japan exports, output showing weak movements; Japan's economy continues to recovery moderately as a trend; Japan's economy likely to continue recovering moderately with effect of sales tax hike likely to gradually subside; BoJ will maintain QQE for as long as needed to stably achieve its price target; won't hesitate adjusting policy if needed to meet price target, should force us to alter projections."
Japan's MoF says FinMin Taro Aso n U.S. Treasury Secretary Jack Lew will hold a bilateral meeting on Friday ahead of a w/end gathering of finance leaders in Cairns, Australia. The ministry says the 2 sides will likely discuss the eco. situations of their countries as well as the world economy.
Despite cable's initial brief drop to 1.6247 in Australia on Thursday, the British pound ratcheted higher on active cross buying in sterling on speculation that Scottish voters may vote 'No' for the Scottish independence referendum. Cable rallied to as high as 1.6409 in New York.
Market players are focusing on the vote outcome of the Scottish independence referendum on Friday. The WSJ reported offficials said they are expecting the largest turnout for any Scottish vote on record. In total, 4.29 mln people having registered to vote, the biggest electorate Scotland has had. Recent polls suggest more than 90% of voters plan to turn out today.
Friday will see the release of Germany's producer prices, eurozone current account, Canada's core CPI, CPI inflation and wholesale trade and U.S. leading index.
Dollar falls broadly on profit-taking
Although U.S. dollar extended rally to a fresh 6-year 108.96 vs yen on Thursday following Wednesday's release of Fed's policy statement . Euro dropped briefly to a fresh 14-month low at 1.2834 in Australian morning before rebounding strongly to 1.2911 after the release of results of ECB TLTRO operation as ECB allotted 82.60 billion euros which was less then market expectation of 100-150 billion euros in its TLTRO operation. Euro retreated briefly to 1.2857 in New York morning after the release of better-than-expected U.S. jobless claims data but only to rise to 1.2928.
U.S. jobless claims came in better-than-expected at 280,000 versus forecast of 305,000 and previous revised figure of 316,000.
ECB's Praet said "markets have understood that Jun/Sep measures shud be seen in combination; measures can only be addressed once fully implemented; Jun/Sep stimulus measures will have sizeable impact on ECB's balance sheet; ECB ready to use additional unconventional instruments within its mandate if necessary."
BoJ's Kuroda said "Japan exports, output showing weak movements; Japan's economy continues to recovery moderately as a trend; Japan's economy likely to continue recovering moderately with effect of sales tax hike likely to gradually subside; BoJ will maintain QQE for as long as needed to stably achieve its price target; won't hesitate adjusting policy if needed to meet price target, should force us to alter projections."
Japan's MoF says FinMin Taro Aso n U.S. Treasury Secretary Jack Lew will hold a bilateral meeting on Friday ahead of a w/end gathering of finance leaders in Cairns, Australia. The ministry says the 2 sides will likely discuss the eco. situations of their countries as well as the world economy.
Despite cable's initial brief drop to 1.6247 in Australia on Thursday, the British pound ratcheted higher on active cross buying in sterling on speculation that Scottish voters may vote 'No' for the Scottish independence referendum. Cable rallied to as high as 1.6409 in New York.
Market players are focusing on the vote outcome of the Scottish independence referendum on Friday. The WSJ reported offficials said they are expecting the largest turnout for any Scottish vote on record. In total, 4.29 mln people having registered to vote, the biggest electorate Scotland has had. Recent polls suggest more than 90% of voters plan to turn out today.
Friday will see the release of Germany's producer prices, eurozone current account, Canada's core CPI, CPI inflation and wholesale trade and U.S. leading index.
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