Market Review - 29/05/2015 20:17GMT
Euro rises to 1.1006 on optimism over Greek debt
The single currency found renewed buying interest at 1.0926 in European morning on Friday and then ratcheted higher to 1.0990 in New York morning, however, the release of slightly higher-than-expected U.S. GDP data knocked price lower to 1.0954 but only to rise again to a session high of 1.1006 before easing.
Despite dollar's brief retreat from 124.16 to 123.72 against the Japanese yen in New York morning, the greenback rose again to a session high of 124.18 in thin New York trading.
Japan FinMin Aso said welcome China's intention to reform its yuan currency; G7 did not discuss currency moves specifically; progress in China's capital market liberalisation should pave way for yuan to satisfy IMF criteria as SDR currency.
The United States warned on Friday of a possible accident for the world economy if Greece and its creditors miss their June deadlines to avert a debt default. U.S. treasury sec. Lew said broad view in G7 that countries need to take measures to boost growth, including monetary and fiscal measures; G7 engaged on Ukraine and Greece; stressed need to find pragmatic outcome on Greece; broad view in G7 that Greece needs to make some very tough decisions; Greece must show clarity in talks on debt crisis; says great uncertainty about what a country leaving euro zone would mean; all parties in Greece talks need to move, flexibility needed; possible that June 5 is not the real deadline for Greece; says deal has to be based on actions that Greece takes.
The United States warned on Friday of a possible accident for the world economy if Greece and its creditors miss their June deadlines to avert a debt default.
Germany's Merkel said will be "constructive" partner to UK in run-up to EU referendum; wants to find solution with UK on reform of EU, there is will to work together on this. German FinMin Schaeuble says up to IMF to decide whether renminbi will be included in currency basket this autumn; seems optimistic to me. Bundesbank Chief Weidmann says G7 members agreed best to do structural reforms quickly; G7 participants see recent sharp rise in bond yields as a correction; latest bond market moves not a cause for concern.
German FinMin Schaeuble said all G7 members stressed importance of structural reforms; gave G7 partners update on Greece; spoke only briefly about it; positive news from Athens is not yet fully reflected in Greece's talks with creditors; G7 agreed everyone will help Ukraine progress with debt restructuring; G7 spoke about possible inclusion of renminbi in IMF currency basket; there was complete agreement it is desirable.
Cable edged higher to 1.5343 in Asian morning on Friday and then tumbled to1.5237 in New York morning due to renewed dollar's strength elsewhere., however, short-covering lifted the pair to 1.5301 before easing near New York close.
This week will see the release of Japan's capital spending, Australia's TD-MI inflation gauge, China's NBS manufacturing and non-manufacturing PMI, Australia's building approvals, Japan's manufacturing PMI, China's HSBC manufacturing final PMI, German, eurozone and U.K. Markit manufacturing PMI, Germany's CPI and HICP, U.S. PCE price index, Markit service PMI and ISM manufacturing PMI on Monday.
Australia's current account deficit, RBA rate decision and rate statement, Germany's unemployment rate, U.K. Markit/CIPS construction PM, mortgage approvals and mortgage lending, eurozone inflation, producer prices, U.S. Redbook, durable goods and factory orders on Tuesday.
Australia's GDP, China's HSBC services PMI, U.K. Nationwide house price, Germany's Markit services PMI, eurozone Markit services PMI final, U.K. Markit/CIPS services PMI, eurozone unemployment rate, retail sales and ECB rate decision and news conference, U.S. international trade, Canada's exports, imports and trade balance, U.S. ISM non-manufacturing PMI on Wednesday.
Australia's trade balance and retail sales, Bank of England interest rate decision, U.S. initial jobless claims and Canada's Ivey PMI on Thursday.
Japan's leading indicator, Germany's factory orders, U.K. consumer inflation expectations, eurozone revised GDP, U.S. non-farm payrolls and unemployment rate, Canada's employment change, labour productivity rate on Friday.
Euro rises to 1.1006 on optimism over Greek debt
The single currency found renewed buying interest at 1.0926 in European morning on Friday and then ratcheted higher to 1.0990 in New York morning, however, the release of slightly higher-than-expected U.S. GDP data knocked price lower to 1.0954 but only to rise again to a session high of 1.1006 before easing.
Despite dollar's brief retreat from 124.16 to 123.72 against the Japanese yen in New York morning, the greenback rose again to a session high of 124.18 in thin New York trading.
Japan FinMin Aso said welcome China's intention to reform its yuan currency; G7 did not discuss currency moves specifically; progress in China's capital market liberalisation should pave way for yuan to satisfy IMF criteria as SDR currency.
The United States warned on Friday of a possible accident for the world economy if Greece and its creditors miss their June deadlines to avert a debt default. U.S. treasury sec. Lew said broad view in G7 that countries need to take measures to boost growth, including monetary and fiscal measures; G7 engaged on Ukraine and Greece; stressed need to find pragmatic outcome on Greece; broad view in G7 that Greece needs to make some very tough decisions; Greece must show clarity in talks on debt crisis; says great uncertainty about what a country leaving euro zone would mean; all parties in Greece talks need to move, flexibility needed; possible that June 5 is not the real deadline for Greece; says deal has to be based on actions that Greece takes.
The United States warned on Friday of a possible accident for the world economy if Greece and its creditors miss their June deadlines to avert a debt default.
Germany's Merkel said will be "constructive" partner to UK in run-up to EU referendum; wants to find solution with UK on reform of EU, there is will to work together on this. German FinMin Schaeuble says up to IMF to decide whether renminbi will be included in currency basket this autumn; seems optimistic to me. Bundesbank Chief Weidmann says G7 members agreed best to do structural reforms quickly; G7 participants see recent sharp rise in bond yields as a correction; latest bond market moves not a cause for concern.
German FinMin Schaeuble said all G7 members stressed importance of structural reforms; gave G7 partners update on Greece; spoke only briefly about it; positive news from Athens is not yet fully reflected in Greece's talks with creditors; G7 agreed everyone will help Ukraine progress with debt restructuring; G7 spoke about possible inclusion of renminbi in IMF currency basket; there was complete agreement it is desirable.
Cable edged higher to 1.5343 in Asian morning on Friday and then tumbled to1.5237 in New York morning due to renewed dollar's strength elsewhere., however, short-covering lifted the pair to 1.5301 before easing near New York close.
This week will see the release of Japan's capital spending, Australia's TD-MI inflation gauge, China's NBS manufacturing and non-manufacturing PMI, Australia's building approvals, Japan's manufacturing PMI, China's HSBC manufacturing final PMI, German, eurozone and U.K. Markit manufacturing PMI, Germany's CPI and HICP, U.S. PCE price index, Markit service PMI and ISM manufacturing PMI on Monday.
Australia's current account deficit, RBA rate decision and rate statement, Germany's unemployment rate, U.K. Markit/CIPS construction PM, mortgage approvals and mortgage lending, eurozone inflation, producer prices, U.S. Redbook, durable goods and factory orders on Tuesday.
Australia's GDP, China's HSBC services PMI, U.K. Nationwide house price, Germany's Markit services PMI, eurozone Markit services PMI final, U.K. Markit/CIPS services PMI, eurozone unemployment rate, retail sales and ECB rate decision and news conference, U.S. international trade, Canada's exports, imports and trade balance, U.S. ISM non-manufacturing PMI on Wednesday.
Australia's trade balance and retail sales, Bank of England interest rate decision, U.S. initial jobless claims and Canada's Ivey PMI on Thursday.
Japan's leading indicator, Germany's factory orders, U.K. consumer inflation expectations, eurozone revised GDP, U.S. non-farm payrolls and unemployment rate, Canada's employment change, labour productivity rate on Friday.
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