Market Review - 23/07/2015 22:42GMT
U.S. dollar rises briefly after upbeat jobless claims data
The single currency swung wildly on Thursday. Euro found renewed buying at 1.0923 in European morning on and then penetrated Tuesday's high at 1.0969 to 1.1019 in New York morning as the Greek parliament approved a second set of reforms required to start negotiations with lenders in a bid to avert bankruptcy. The pair later fell to 1.0952 after upbeat US jobless claims which came in at 255,000 versus economists' forecast of 280,000, however, renewed buying lifted the pair to 1.1016 near New York close.
ECB's Visco said 'issue of Greek debt needs to be dealt with, even by extending debt repayments, but this won't be enough to overcome Greece's problems.' Bundesbank's Weidmann suggested '3-year extension of maturity on a country's bonds for any state that has requested an ESM bailout programme.' Greek think-tank Iobe said 'forecasts Greek economy will shrink 2-2.5% this year; sees milder recession in 2016, return to growth could be possible if reforms fully carried out; important bailout deal concluded quickly, any delay would cost the economy.'
Despite dollar's selloff from 124.11 to 123.67 in European morning on Thursday, buying interest above Wednesday's 123.57 low lifted the pair and dollar rose to 124.18 in New York morning after upbeat US jobless claims before falling again.
Cable ratcheted higher n climbed to 1.5671 in European morning before tumbling to 1.5584 after the release of downbeat UK retail sales. The pair dropped further to 1.5500 on active cross selling in sterling. the U.K. Office for National Statistics (ONS) showed retail sales in the U.K. fell unexpectedly in Jun, dampening optimism over the country's economic outlook n dimming prospects for higher interest rates. ONS said U.K. retail sales declined by a seasonally adjusted 0.2% last month, disappointing forecasts for a gain of 0.3%. Retail sales in May rose by 0.3%, whose figure was revised fm a previously reported gain of 0.2%. Year-on-year, retail sales increased at an annualized rate of 4.0% last month, below expectations for a 4.9% gain, after rising at a rate of 4.7% in May.
Friday will see the release of New Zealand's imports, exports and trade balance, Japan's manufacturing PMI, China's Markit manufacturing PMI flash, Germany's and eurozone Markit manufacturing and services PMI respectively, U.S. Markit manufacturnig PMI, U.S. new home sales.
U.S. dollar rises briefly after upbeat jobless claims data
The single currency swung wildly on Thursday. Euro found renewed buying at 1.0923 in European morning on and then penetrated Tuesday's high at 1.0969 to 1.1019 in New York morning as the Greek parliament approved a second set of reforms required to start negotiations with lenders in a bid to avert bankruptcy. The pair later fell to 1.0952 after upbeat US jobless claims which came in at 255,000 versus economists' forecast of 280,000, however, renewed buying lifted the pair to 1.1016 near New York close.
ECB's Visco said 'issue of Greek debt needs to be dealt with, even by extending debt repayments, but this won't be enough to overcome Greece's problems.' Bundesbank's Weidmann suggested '3-year extension of maturity on a country's bonds for any state that has requested an ESM bailout programme.' Greek think-tank Iobe said 'forecasts Greek economy will shrink 2-2.5% this year; sees milder recession in 2016, return to growth could be possible if reforms fully carried out; important bailout deal concluded quickly, any delay would cost the economy.'
Despite dollar's selloff from 124.11 to 123.67 in European morning on Thursday, buying interest above Wednesday's 123.57 low lifted the pair and dollar rose to 124.18 in New York morning after upbeat US jobless claims before falling again.
Cable ratcheted higher n climbed to 1.5671 in European morning before tumbling to 1.5584 after the release of downbeat UK retail sales. The pair dropped further to 1.5500 on active cross selling in sterling. the U.K. Office for National Statistics (ONS) showed retail sales in the U.K. fell unexpectedly in Jun, dampening optimism over the country's economic outlook n dimming prospects for higher interest rates. ONS said U.K. retail sales declined by a seasonally adjusted 0.2% last month, disappointing forecasts for a gain of 0.3%. Retail sales in May rose by 0.3%, whose figure was revised fm a previously reported gain of 0.2%. Year-on-year, retail sales increased at an annualized rate of 4.0% last month, below expectations for a 4.9% gain, after rising at a rate of 4.7% in May.
Friday will see the release of New Zealand's imports, exports and trade balance, Japan's manufacturing PMI, China's Markit manufacturing PMI flash, Germany's and eurozone Markit manufacturing and services PMI respectively, U.S. Markit manufacturnig PMI, U.S. new home sales.
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