Market Review - 25/03/2015 22:53GMT
U.S. dollar drops briefly after weak durable goods data before rebounding
The greenback fell broadly against major currencies on Wednesday after weaker-than-expected U.S. durable goods data, however, U.S. rebounded in New York on renewed selling interest elsewhere.
The single currency rebounded from Asian low at 1.0901 to 1.0974 after the release of stronger-than-expected German IFO indicator for March. Germany Ifo business climate and current conditions came in at 107.9 and 112.0 versus forecasts of 107.3 and 112.0 respectively.
IFO economist said 'lower euro exchange rate and lower oil prices play increasingly important role for economy; weaker euro exchange rate boosting Germany's export expectations; sees no danger at the moment of German economy overheating; German Q1 GDP growth likely to be nearly as high as the 0.7%.'growth in 2014 Q4.
Euro further rose to 1.1014 in New York morning after the release of weak U.S. durable goods figure, however, renewed selling interest capped euro's upside and the pair subsequently retreated to 1.0949.
Chicago Federal Reserve President Charles Evans said Federal Reserve policymakers should be "quite confident" that inflation is headed back to a healthy 2% before raising interest rates, said on Wed, urging a delay in rate hikes until the first half of next year; stronger dollar will be challenge for some but energy prices having beneficial effect for consumers n businesses; if you're below your objective for too long people might wonder whether or not that is going to persist; if low level of inflation compensation stick for 3-6 months you have to worry.'
German Finance Ministry spokesman said 'sees no reason for 1.2 billion euros of EFSF funds to be released to Greek government.'
U.S. dollar ratcheted lower from 119.83 in Tokyo morning to an intra-day low of 119.24 after the release of weaker-than-expected U.S. durable goods data, however, short-covering lifted the pair to 119.6l later.
The British pound rebounded after an increase in U.K. mortgage approvals. Mortgage approvals in Britain rose in February to their highest level in 5 months, but were still 20% lower than a year ago, seasonally adjusted data from the British Bankers' Association (BBA) showed on Wednesday. BBA Chief Economist Richard Woolhouse said "the increase in mortgage approvals is welcome news and a sign that the housing market is beginning to improve. We're seeing stronger demand for mortgages as consumers take advantage of some of the very competitive deals currently available demand for loans and other types of personal borrowing is rising at its fastest rate since the financial crisis; consumers are feeling increasingly confident about buying big ticket items, such as cars or home improvements, as the recovery really begins to take hold; personal deposits grew very slowly as alternative savings vehicles remain attractive, particularly the new pensioner bond."
Despite extending Tuesday's decline to 1.4831, cable rebounded strongly to 1.4955 after the release of weaker-than-expected U.S. durable goods data before falling again to 1.4860 near New York close.
Thursday will see the release of Germany's GfK consumer sentiment, U.K. retail sales, CBI distributive trades and U.S. jobless claims.
U.S. dollar drops briefly after weak durable goods data before rebounding
The greenback fell broadly against major currencies on Wednesday after weaker-than-expected U.S. durable goods data, however, U.S. rebounded in New York on renewed selling interest elsewhere.
The single currency rebounded from Asian low at 1.0901 to 1.0974 after the release of stronger-than-expected German IFO indicator for March. Germany Ifo business climate and current conditions came in at 107.9 and 112.0 versus forecasts of 107.3 and 112.0 respectively.
IFO economist said 'lower euro exchange rate and lower oil prices play increasingly important role for economy; weaker euro exchange rate boosting Germany's export expectations; sees no danger at the moment of German economy overheating; German Q1 GDP growth likely to be nearly as high as the 0.7%.'growth in 2014 Q4.
Euro further rose to 1.1014 in New York morning after the release of weak U.S. durable goods figure, however, renewed selling interest capped euro's upside and the pair subsequently retreated to 1.0949.
Chicago Federal Reserve President Charles Evans said Federal Reserve policymakers should be "quite confident" that inflation is headed back to a healthy 2% before raising interest rates, said on Wed, urging a delay in rate hikes until the first half of next year; stronger dollar will be challenge for some but energy prices having beneficial effect for consumers n businesses; if you're below your objective for too long people might wonder whether or not that is going to persist; if low level of inflation compensation stick for 3-6 months you have to worry.'
German Finance Ministry spokesman said 'sees no reason for 1.2 billion euros of EFSF funds to be released to Greek government.'
U.S. dollar ratcheted lower from 119.83 in Tokyo morning to an intra-day low of 119.24 after the release of weaker-than-expected U.S. durable goods data, however, short-covering lifted the pair to 119.6l later.
The British pound rebounded after an increase in U.K. mortgage approvals. Mortgage approvals in Britain rose in February to their highest level in 5 months, but were still 20% lower than a year ago, seasonally adjusted data from the British Bankers' Association (BBA) showed on Wednesday. BBA Chief Economist Richard Woolhouse said "the increase in mortgage approvals is welcome news and a sign that the housing market is beginning to improve. We're seeing stronger demand for mortgages as consumers take advantage of some of the very competitive deals currently available demand for loans and other types of personal borrowing is rising at its fastest rate since the financial crisis; consumers are feeling increasingly confident about buying big ticket items, such as cars or home improvements, as the recovery really begins to take hold; personal deposits grew very slowly as alternative savings vehicles remain attractive, particularly the new pensioner bond."
Despite extending Tuesday's decline to 1.4831, cable rebounded strongly to 1.4955 after the release of weaker-than-expected U.S. durable goods data before falling again to 1.4860 near New York close.
Thursday will see the release of Germany's GfK consumer sentiment, U.K. retail sales, CBI distributive trades and U.S. jobless claims.
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