Market Review - 01/10/2014 22:52GMT
Dollar falls sharply against yen from 6-year highs after weak U.S. data
The greenback tumbled from a fresh 6-year peak against the Japanese yen after the release of weaker-than-expected U.S. construction spending and ISM manufacturing.
U.S. ISM manufacturing PMI and construction spending came in much lower-than-expected at 56.6 n -0.8% vs forecasts of 58.5 n 0.5% respectively.
Versus the Japanese yen, although the greenback resumed its recent ascent and rose to a fresh 6-year peak at 110.09 in Asian morning, price pared its gains and retreated to 109.69 in European morning. Later, dollar met renewed selling at 109.98 at New York open and tumbled to an intra-day low at 108.99 in New York afternoon, weighed down by the release of poor U.S. data.
Despite trading sideways in Asia, the single currency dropped to 1.2585 in early European morning and then edged marginally lower to session low at 1.2484 at New York open. However, euro pared its losses and rebounded sharply to 1.2640 in New York morning on dollar's weakness before stabilizing.
The British pound remained under pressure in Asia and dropped to an intra-day low at 1.6161 in European morning. However, cable pared its losses and rose to session high at 1.6252 in New York morning before retreated again to 1.6181 in New York afternoon.
In other news, BoE's Forbes said 'dampening effect of stronger sterling of inflation likely to peak at end of 2014; increasingly important to monitor domestically generated inflation, especially unit labour costs; UK inflation may be running about 0.8% lower than if sterling had not appreciated; inflation cud increase quickly as drag fm sterling fades, suggesting need for tighter monetary policy; critically important to monitor measures of prospective inflation for deciding on policy.'
On the data front, Germany and EZ manufacturing PMI came in slightly weaker-than-expected at 49.9 and 50.3 vs forecasts of 50.3 and 50.5 respectively. U.S. manufacturing PMI was reported at 57.5, down fm prev. figure of 57.9.
Data to be released on Thursday:
China market holiday, Australia new home sales, exports, imports, trade balance, UK construction PMI, EU producer prices, ECB rate decision, U.S. jobless claims, ISM New-York index, durable goods and factory orders.
Dollar falls sharply against yen from 6-year highs after weak U.S. data
The greenback tumbled from a fresh 6-year peak against the Japanese yen after the release of weaker-than-expected U.S. construction spending and ISM manufacturing.
U.S. ISM manufacturing PMI and construction spending came in much lower-than-expected at 56.6 n -0.8% vs forecasts of 58.5 n 0.5% respectively.
Versus the Japanese yen, although the greenback resumed its recent ascent and rose to a fresh 6-year peak at 110.09 in Asian morning, price pared its gains and retreated to 109.69 in European morning. Later, dollar met renewed selling at 109.98 at New York open and tumbled to an intra-day low at 108.99 in New York afternoon, weighed down by the release of poor U.S. data.
Despite trading sideways in Asia, the single currency dropped to 1.2585 in early European morning and then edged marginally lower to session low at 1.2484 at New York open. However, euro pared its losses and rebounded sharply to 1.2640 in New York morning on dollar's weakness before stabilizing.
The British pound remained under pressure in Asia and dropped to an intra-day low at 1.6161 in European morning. However, cable pared its losses and rose to session high at 1.6252 in New York morning before retreated again to 1.6181 in New York afternoon.
In other news, BoE's Forbes said 'dampening effect of stronger sterling of inflation likely to peak at end of 2014; increasingly important to monitor domestically generated inflation, especially unit labour costs; UK inflation may be running about 0.8% lower than if sterling had not appreciated; inflation cud increase quickly as drag fm sterling fades, suggesting need for tighter monetary policy; critically important to monitor measures of prospective inflation for deciding on policy.'
On the data front, Germany and EZ manufacturing PMI came in slightly weaker-than-expected at 49.9 and 50.3 vs forecasts of 50.3 and 50.5 respectively. U.S. manufacturing PMI was reported at 57.5, down fm prev. figure of 57.9.
Data to be released on Thursday:
China market holiday, Australia new home sales, exports, imports, trade balance, UK construction PMI, EU producer prices, ECB rate decision, U.S. jobless claims, ISM New-York index, durable goods and factory orders.
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