Market Review - 26/09/2014 20:32GMT
Euro falls to a fresh 22-month low at 1.2678 on Friday
The single currency tumbled to a fresh 22-month low at 1.2677 on Friday due to dollar's broad-based strength after the release of U.S. GDP data together with the rebound in U.S. stock markets.
The U.S. economy grew at a 4.6% annulized rate in the second quarter, in line with market expectations. The Reuters poll consensus was 4.6% with a low of 4.2% and a high of 5.0%.
ECB's Coeure said 'an already see signs that bank health checks have affected speed n quality of deleveraging; banks will be in stronger position to resume new lending once checks concluded, residual uncertainties removed; we expect stronger take up fm banks in Dec operation n 6 subsequent installments until Jun 2016; ECB will continue to provide nominal anchor to Eurozone recovery by bringing inflation back to growth rate of below but close to 2%.'
Despite dollar's brief drop to 108.48 in Australia on Friday, renewed buying emerged there lifted the pair. U.S. dollar rose to 109.11 ahead of Asian open and then to 109.16 in Asian morning on comments fm Japan's health minister Shiozaki who said no hurry to reform GPIF. The greenback later briefly penetrated 119.46 to a fresh 6-year high at 109.54 versus the Japanese yen in New York due to the rally in U.S. stock markets. Dow Jones index rose sharply by more than 196 points to 17142.00.
The British pound also fell sharply on Friday and weakened to 1.6237 on dollar's strength elsewhere due to the rally in U.S. stock markets.
Later in the week will see the release of U.K. mortgage approvals, eurozone business climate, consumer confidence, economic and industrial sentiment, Germany's CPI and HICP, U.S. PCE price index, core PCE price index, personal income and consumption, pending home index and pending sales change on Monday;
Gfk consumer confidence, Japan's unemployment rate, all household spending, industrial prelim. output, IP forecast and retail sales, China's final HSBC manufacturing PMI, Japan's construction orders and housing starts, Germany's retail sales, U.K. national house price, Swiss KOF indicator, Germany's unemployment rate, Canada's GDP and producer prices, U.S. Redbook, CaseShiller 20 MM house prices, Chicago PMI, consumer confidence on Tuesday;
Japan's Tankan, China's NBS manufacturing PMI, Australia's retail sales, Japan's manufacturing PMI, Swiss PMI, German and eurozone Markit manufacturing PMI, U.K. Markit manufacturing PMI, ADP National employment, Canada's RBC manufacturing PMI, U.S. final Markit manufacturing PMI, construction spending, ISM manufacturing PMI on Wednesday;
Australia's HIA new home sales, building approvals and trade balance, U.K. Markit construction PMI, eurozone producer prices, ECB rate decision, U.S. jobless claims, ISM New York index, revised durable goods and factory orders on Thursday;
China's NBS non-manufacturing PMI, German and eurozone Markit final services PMI, eurozone retail sales, Canada's imports, exports and trade balance, U.S. average earnings, government payrolls, unemployment rate, Markit services PMI, ISM non-manufacturing new orders and PMI on Friday.
Euro falls to a fresh 22-month low at 1.2678 on Friday
The single currency tumbled to a fresh 22-month low at 1.2677 on Friday due to dollar's broad-based strength after the release of U.S. GDP data together with the rebound in U.S. stock markets.
The U.S. economy grew at a 4.6% annulized rate in the second quarter, in line with market expectations. The Reuters poll consensus was 4.6% with a low of 4.2% and a high of 5.0%.
ECB's Coeure said 'an already see signs that bank health checks have affected speed n quality of deleveraging; banks will be in stronger position to resume new lending once checks concluded, residual uncertainties removed; we expect stronger take up fm banks in Dec operation n 6 subsequent installments until Jun 2016; ECB will continue to provide nominal anchor to Eurozone recovery by bringing inflation back to growth rate of below but close to 2%.'
Despite dollar's brief drop to 108.48 in Australia on Friday, renewed buying emerged there lifted the pair. U.S. dollar rose to 109.11 ahead of Asian open and then to 109.16 in Asian morning on comments fm Japan's health minister Shiozaki who said no hurry to reform GPIF. The greenback later briefly penetrated 119.46 to a fresh 6-year high at 109.54 versus the Japanese yen in New York due to the rally in U.S. stock markets. Dow Jones index rose sharply by more than 196 points to 17142.00.
The British pound also fell sharply on Friday and weakened to 1.6237 on dollar's strength elsewhere due to the rally in U.S. stock markets.
Later in the week will see the release of U.K. mortgage approvals, eurozone business climate, consumer confidence, economic and industrial sentiment, Germany's CPI and HICP, U.S. PCE price index, core PCE price index, personal income and consumption, pending home index and pending sales change on Monday;
Gfk consumer confidence, Japan's unemployment rate, all household spending, industrial prelim. output, IP forecast and retail sales, China's final HSBC manufacturing PMI, Japan's construction orders and housing starts, Germany's retail sales, U.K. national house price, Swiss KOF indicator, Germany's unemployment rate, Canada's GDP and producer prices, U.S. Redbook, CaseShiller 20 MM house prices, Chicago PMI, consumer confidence on Tuesday;
Japan's Tankan, China's NBS manufacturing PMI, Australia's retail sales, Japan's manufacturing PMI, Swiss PMI, German and eurozone Markit manufacturing PMI, U.K. Markit manufacturing PMI, ADP National employment, Canada's RBC manufacturing PMI, U.S. final Markit manufacturing PMI, construction spending, ISM manufacturing PMI on Wednesday;
Australia's HIA new home sales, building approvals and trade balance, U.K. Markit construction PMI, eurozone producer prices, ECB rate decision, U.S. jobless claims, ISM New York index, revised durable goods and factory orders on Thursday;
China's NBS non-manufacturing PMI, German and eurozone Markit final services PMI, eurozone retail sales, Canada's imports, exports and trade balance, U.S. average earnings, government payrolls, unemployment rate, Markit services PMI, ISM non-manufacturing new orders and PMI on Friday.
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