Market Review - 08/06/2015 22:55GMT
Dollar falls broadly on long liquidation
Despite last Friday's selloff to 1.1049 after release of much stronger-than-expected U.S. NFP, the single currency ratcheted higher on Monday due to dollar's broad-based weakness together with the rise in German Bund yields and solid German data as Germany's industrial output rose by 0.9% versus economists' forecast of 0.6% whilst trade balance rose to 22.3 billion in April against the expectation of 19.0 billion from upwardly revised reading of 19.4 billion in March.
Euro rebounded from intra-day low at 1.1083 (New Zealand) to 1.1178 in European morning and then rallied to as high as 1.1295 near New York close.
An EU official said that Greek officials met on Monday with EU Economics Commissioner Pierre Moscovici on what reforms Greece must implement to get new loans, but there was no new proposal from Athens to which its creditors could agree to. European Commission President Jean-Claude Juncker told German television network ARD on Monday that he was waiting for Greece to make its contributions to help the European Union resolve the eurozone crisis. The Wall Street Journal cited unnamed sources that Greece's international creditors last week proposed extending the country's bailout until the end of March 2016 in return for pension cuts, tax increases and other policy steps by Athens.
ECB's Noyer said 'QE has seemed to work, boosting growth prospects; eurozone governments need to accelerate structural reforms; reforms are being undertaken too slowly and timidly.'
In other news, a Bloomberg report cited President Barack Obama as saying he was worried about a strong dollar, however, both Obama and White House officials denied the report. The report came after reporters met France's President Francois Hollande ahead of the second day of the G7 summit. The greenback tumbled against the Japanese yen to as low as 124.30 near New York close before rebounding.
Despite last Friday's selloff to 1.5191 due to robust U.S. jobs report, the British pound swung wildly on Monday. Cable rebounded to 1.5305 in European morning and then fell to to 1.5222 but only to rally to 1.5354 near New York close on dollar's broad-based weakness.
Tuesday will see the release of New Zealand's manufacturing sales, U.K. BRC retail sales, China's CPI and PPI, Australia's NAB business confidence, Japan's consumer confidence index, Swiss unemployment rate and CPI, U.K.goods trade balance, eurozone revised GDP, U.K. inflation report hearings, U.S. Redbook, wholesales sales and wholesales inventories.
Dollar falls broadly on long liquidation
Despite last Friday's selloff to 1.1049 after release of much stronger-than-expected U.S. NFP, the single currency ratcheted higher on Monday due to dollar's broad-based weakness together with the rise in German Bund yields and solid German data as Germany's industrial output rose by 0.9% versus economists' forecast of 0.6% whilst trade balance rose to 22.3 billion in April against the expectation of 19.0 billion from upwardly revised reading of 19.4 billion in March.
Euro rebounded from intra-day low at 1.1083 (New Zealand) to 1.1178 in European morning and then rallied to as high as 1.1295 near New York close.
An EU official said that Greek officials met on Monday with EU Economics Commissioner Pierre Moscovici on what reforms Greece must implement to get new loans, but there was no new proposal from Athens to which its creditors could agree to. European Commission President Jean-Claude Juncker told German television network ARD on Monday that he was waiting for Greece to make its contributions to help the European Union resolve the eurozone crisis. The Wall Street Journal cited unnamed sources that Greece's international creditors last week proposed extending the country's bailout until the end of March 2016 in return for pension cuts, tax increases and other policy steps by Athens.
ECB's Noyer said 'QE has seemed to work, boosting growth prospects; eurozone governments need to accelerate structural reforms; reforms are being undertaken too slowly and timidly.'
In other news, a Bloomberg report cited President Barack Obama as saying he was worried about a strong dollar, however, both Obama and White House officials denied the report. The report came after reporters met France's President Francois Hollande ahead of the second day of the G7 summit. The greenback tumbled against the Japanese yen to as low as 124.30 near New York close before rebounding.
Despite last Friday's selloff to 1.5191 due to robust U.S. jobs report, the British pound swung wildly on Monday. Cable rebounded to 1.5305 in European morning and then fell to to 1.5222 but only to rally to 1.5354 near New York close on dollar's broad-based weakness.
Tuesday will see the release of New Zealand's manufacturing sales, U.K. BRC retail sales, China's CPI and PPI, Australia's NAB business confidence, Japan's consumer confidence index, Swiss unemployment rate and CPI, U.K.goods trade balance, eurozone revised GDP, U.K. inflation report hearings, U.S. Redbook, wholesales sales and wholesales inventories.
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