Market Review - 18/05/2015 22:53GMT
Euro falls broadly vs yen and sterling on profit taking Monday
Despite last Friday's rally to a fresh 3-month peak of 1.1467, the single currency ratcheted lower on Monday. Euro penetrated last Friday's hourly support at 1.1412 in European morning and tumbled to 1.1366 before rebounding strongly to 1.1424 but only to fall again due to dollar's broad-based strength on U.S. growth hopes. Euro fell further to an intra-day low of 1.1299 near New York close. Despite last Friday's selloff to 119.20 in New York, the greenback rallied to 119.75 in Asian morning on Monday in part due to the rise in Nikkei-225 index. U.S. dollar later extended gain to 120.04 near New York close.
A paper published Monday by the Federal Reserve Bank of San Francisco said, potentially adding to arguments for raising interest rates sooner rather than later. The U.S. economy is probably not as weak as current estimates suggested. A chart shown in the paper suggested first-quarter growth may have been closer to 1.8%. That's still below the economy's potential but not dramatically so. A stronger economy suggests a lower hurdle for the Fed to raise interest rates that have been near zero since December 2008.
San Francisco Fed President John Williams, whose chief research economist co-authored Monday's paper, has said he believes the economy will bounce back this quarter and may be strong enough for the Fed to begin raising interest rates even as soon as June.
Greek PM Tsipras said on Monday deal with lenders does not only concern Greece but whole of euro zone; sought deal must address greece's long-term funding issue; deal with EU/IMF lenders must not impose further pension cuts; Greece needs growth that will be based on stronger domestic demand, not just exports; deal with EU/IMF lenders must influde bold investment programme. Greek finance minister Varoufakis said Greece has proposed that ESM pays maturing Greek bonds held by ECB; Athens can then pay back ESM later in the future.
Despite last Frdayi's brief rebound from 1.5702 to 1.5809, the British pound ratcheted lower and penetrated aforesaid support at 1.5702 at European morning on Monday. Cable then weakened to 1.5651 before rebounding briefly to 1.5707 but only to fall again to 1.5638 near New York close.
Tuesday will see the release of New Zealand's PPI, Australia's CB leading indicator and RBA meeting's minutes, U.K. CPI, PPI, RPI and DCLG house price index, Germany's ZEW economic sentiment, eurozone inflation report, U.S. building permits, housing starts and Redbook.
Euro falls broadly vs yen and sterling on profit taking Monday
Despite last Friday's rally to a fresh 3-month peak of 1.1467, the single currency ratcheted lower on Monday. Euro penetrated last Friday's hourly support at 1.1412 in European morning and tumbled to 1.1366 before rebounding strongly to 1.1424 but only to fall again due to dollar's broad-based strength on U.S. growth hopes. Euro fell further to an intra-day low of 1.1299 near New York close. Despite last Friday's selloff to 119.20 in New York, the greenback rallied to 119.75 in Asian morning on Monday in part due to the rise in Nikkei-225 index. U.S. dollar later extended gain to 120.04 near New York close.
A paper published Monday by the Federal Reserve Bank of San Francisco said, potentially adding to arguments for raising interest rates sooner rather than later. The U.S. economy is probably not as weak as current estimates suggested. A chart shown in the paper suggested first-quarter growth may have been closer to 1.8%. That's still below the economy's potential but not dramatically so. A stronger economy suggests a lower hurdle for the Fed to raise interest rates that have been near zero since December 2008.
San Francisco Fed President John Williams, whose chief research economist co-authored Monday's paper, has said he believes the economy will bounce back this quarter and may be strong enough for the Fed to begin raising interest rates even as soon as June.
Greek PM Tsipras said on Monday deal with lenders does not only concern Greece but whole of euro zone; sought deal must address greece's long-term funding issue; deal with EU/IMF lenders must not impose further pension cuts; Greece needs growth that will be based on stronger domestic demand, not just exports; deal with EU/IMF lenders must influde bold investment programme. Greek finance minister Varoufakis said Greece has proposed that ESM pays maturing Greek bonds held by ECB; Athens can then pay back ESM later in the future.
Despite last Frdayi's brief rebound from 1.5702 to 1.5809, the British pound ratcheted lower and penetrated aforesaid support at 1.5702 at European morning on Monday. Cable then weakened to 1.5651 before rebounding briefly to 1.5707 but only to fall again to 1.5638 near New York close.
Tuesday will see the release of New Zealand's PPI, Australia's CB leading indicator and RBA meeting's minutes, U.K. CPI, PPI, RPI and DCLG house price index, Germany's ZEW economic sentiment, eurozone inflation report, U.S. building permits, housing starts and Redbook.
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