Market Review - 30/10/2014 22:38GMT
Euro pares loss after hitting 3-week low of 1.2547
Euro extended Wednesday's selloff to 1.2556 in Europe on Thursday and then rebounded briefly to 1.2598 on short-covering. The pair later nose-dived to 1.2547 in New York morning after the release of stronger-than-expected U.S. GDP but another round of short-covering lifted price to 1.2633 before easing.
U.S. GDP advance came in better-than-expected at 3.5% versus forecast of 3.0%. Besides, Germany unemployment rate remained unchanged at 6.7% whilst unemployment change came in at -22,000 versus forecast of 5,000.
In other news, German Chancellor Anegla Merkel who says Germany has very good domestic demand, we promise our EU partners it will continue. ECB said 'ABS purchases expected to start in Nov 2014.' German Finance Ministry said 'denies Greek media reports that German and Greece reached a deal on further support for Greece after end of bailout programme; German and Greek FinMins met yesterday, but without concrete results.'
U.S. dollar rose to a fresh 3-1/2 week high of 109.46 in New York on Thursday versus the Japanese yen on renewed risk appetites due to the rally in Nikkei-225 index futures n U.S. stock markets. Dow Jones index closed up by 216 points or 1.27% to 17190.
Japan PM Abe said 'whether Japan can return growth path in Jul-Sep quarter will be key on if proceed with next sales tax hike to 10%; it's true sales tax hike weakens consumers' purchasing power, must scrutinise how it effects prospects for ending deflation; economic growth is continuing as a whole; want to look at various data for Jul-Sep in deciding if to compile extra budget to stimulate economy; need to flexibly review composition of GPIF's pension fund management reflecting end to deflation; won't use pension fund management directly to boost stock prices, but change in allocation will indirectly help Japan's economy.'
Japan's PM Abe said won't comment on FX levels; weak yen positive to exporters, firms operating overseas; will closely watch negative impact fm weak yen on small firms, local areas.
The British pound weakened to 1.5967 in Asia and then 1.5762 in Europe on Thursday following Wednesday's FOMC rate decision and then rebounded briefly to 1.6009. Price later tumbled to 1.5950 after the release of stronger-than-expected U.S. GDP data but short-covering lifted price to 1.6038 before easing.
Friday will see the release of Japan's all household spending, CPI and unemployment, GfK consumer confidence, Australia's PPI, Bank of Japan monetary statement, construction orders, housing starts, BOJ press conference, BOJ outlook report, EU inflation and unemployment, U.S. PCE price index, personal real consumption and income, core PCE price index, Canada's GDP and U.S. University of Michigan sentiment.
Euro pares loss after hitting 3-week low of 1.2547
Euro extended Wednesday's selloff to 1.2556 in Europe on Thursday and then rebounded briefly to 1.2598 on short-covering. The pair later nose-dived to 1.2547 in New York morning after the release of stronger-than-expected U.S. GDP but another round of short-covering lifted price to 1.2633 before easing.
U.S. GDP advance came in better-than-expected at 3.5% versus forecast of 3.0%. Besides, Germany unemployment rate remained unchanged at 6.7% whilst unemployment change came in at -22,000 versus forecast of 5,000.
In other news, German Chancellor Anegla Merkel who says Germany has very good domestic demand, we promise our EU partners it will continue. ECB said 'ABS purchases expected to start in Nov 2014.' German Finance Ministry said 'denies Greek media reports that German and Greece reached a deal on further support for Greece after end of bailout programme; German and Greek FinMins met yesterday, but without concrete results.'
U.S. dollar rose to a fresh 3-1/2 week high of 109.46 in New York on Thursday versus the Japanese yen on renewed risk appetites due to the rally in Nikkei-225 index futures n U.S. stock markets. Dow Jones index closed up by 216 points or 1.27% to 17190.
Japan PM Abe said 'whether Japan can return growth path in Jul-Sep quarter will be key on if proceed with next sales tax hike to 10%; it's true sales tax hike weakens consumers' purchasing power, must scrutinise how it effects prospects for ending deflation; economic growth is continuing as a whole; want to look at various data for Jul-Sep in deciding if to compile extra budget to stimulate economy; need to flexibly review composition of GPIF's pension fund management reflecting end to deflation; won't use pension fund management directly to boost stock prices, but change in allocation will indirectly help Japan's economy.'
Japan's PM Abe said won't comment on FX levels; weak yen positive to exporters, firms operating overseas; will closely watch negative impact fm weak yen on small firms, local areas.
The British pound weakened to 1.5967 in Asia and then 1.5762 in Europe on Thursday following Wednesday's FOMC rate decision and then rebounded briefly to 1.6009. Price later tumbled to 1.5950 after the release of stronger-than-expected U.S. GDP data but short-covering lifted price to 1.6038 before easing.
Friday will see the release of Japan's all household spending, CPI and unemployment, GfK consumer confidence, Australia's PPI, Bank of Japan monetary statement, construction orders, housing starts, BOJ press conference, BOJ outlook report, EU inflation and unemployment, U.S. PCE price index, personal real consumption and income, core PCE price index, Canada's GDP and U.S. University of Michigan sentiment.
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