Market Review 05/05/2015 22:28GMT
Euro rallies on optimism over reaching a Greek deal next Monday
The single currency rallied from 1.1066 to as high as 1.1222 after euro-positive news on optimism about reaching a deal soon as Greek Finance Minister Yanis Varoufakis said after talks in Paris and Brussels that he expected euro zone finance ministers to acknowledge next Monday progress towards a cash-for-reform deal, opening the way to easing Athens' liquidity crisis.
Yanis Varoufakis told reporters after meeting European Economics Commissioner Pierre Moscovici that we are certainly going to have a fruitful discussion on May 11 that will confirm the great progress that has been achieved and will be yet another move, yet another step, in the direction of a final agreement.
Despite dollar's initial rise to 120.51 on active cross selling in Japanese yen, the greenback broadly major currencies after the release of U.S. trade figures as U.S. trade deficit jumped 43.1 percent to $51.4 billion in March, the largest since October 2008. The percent rise was the biggest since December 1996. widest in nearly 6-1/2 years, suggesting the economy contracted in the first quarter. U.S. dollar later tumbled to as low as 119.73.
The British pound fell briefly below Monday's low at 1.5090 to 1.5088 in European morning after the release of downbeat UK construction PMI data. Cable pared its losses on short-covering and later rallied to an intra-day high at 1.5218 in New York in tandem with euro together with dollar's broad-based weakness before easing.
Britain's opposition Labour Party led the ruling Conservatives by 1 percentage point in a Survation opinion poll published on Tuesday, two days before a general election on May 11. Survation showed Labour on 34 percent and the Conservatives on 33 percent. Earlier on Tuesday, a Populus opinion poll put the Conservatives and Labour level on 34 percent each, while an Ashcroft poll had the Conservatives on 32 percent and Labour on 30 percent.
Wednesday will release New Zealand's labour cost, unemployment rate, Japan market holiday, Australia retail sales, China services PMI, Italy services PMI, France services PMI, Germany services PMI, EU services PMI, retail sales, UK services PMI, Canada Ivey PMI and U.S. ADP employment.
Euro rallies on optimism over reaching a Greek deal next Monday
The single currency rallied from 1.1066 to as high as 1.1222 after euro-positive news on optimism about reaching a deal soon as Greek Finance Minister Yanis Varoufakis said after talks in Paris and Brussels that he expected euro zone finance ministers to acknowledge next Monday progress towards a cash-for-reform deal, opening the way to easing Athens' liquidity crisis.
Yanis Varoufakis told reporters after meeting European Economics Commissioner Pierre Moscovici that we are certainly going to have a fruitful discussion on May 11 that will confirm the great progress that has been achieved and will be yet another move, yet another step, in the direction of a final agreement.
Despite dollar's initial rise to 120.51 on active cross selling in Japanese yen, the greenback broadly major currencies after the release of U.S. trade figures as U.S. trade deficit jumped 43.1 percent to $51.4 billion in March, the largest since October 2008. The percent rise was the biggest since December 1996. widest in nearly 6-1/2 years, suggesting the economy contracted in the first quarter. U.S. dollar later tumbled to as low as 119.73.
The British pound fell briefly below Monday's low at 1.5090 to 1.5088 in European morning after the release of downbeat UK construction PMI data. Cable pared its losses on short-covering and later rallied to an intra-day high at 1.5218 in New York in tandem with euro together with dollar's broad-based weakness before easing.
Britain's opposition Labour Party led the ruling Conservatives by 1 percentage point in a Survation opinion poll published on Tuesday, two days before a general election on May 11. Survation showed Labour on 34 percent and the Conservatives on 33 percent. Earlier on Tuesday, a Populus opinion poll put the Conservatives and Labour level on 34 percent each, while an Ashcroft poll had the Conservatives on 32 percent and Labour on 30 percent.
Wednesday will release New Zealand's labour cost, unemployment rate, Japan market holiday, Australia retail sales, China services PMI, Italy services PMI, France services PMI, Germany services PMI, EU services PMI, retail sales, UK services PMI, Canada Ivey PMI and U.S. ADP employment.
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