Market Review - 20/07/2013 00:22GMT
Yen gains and then falls in late New York ahead of Japan election
The Japanese yen traded in volatile fashion against dollar on Friday as investors await the outcome of Japan's weekend upper house elections.
Earlier in Asia, although the greenback rose above Thursday's top at 100.66 to 100.87 at Tokyo open, the pair then briefly but tumbled to session low 99.80 due to the selloff in Nikkei-225. However, price staged a recovery to 100.47 in European morning and then traded narrowly in New York session before rising back to 100.66 on renewed cross-weakness in yen as Nikkei futures gained 140 points.
Despite euro's brief retreat to 1.3089 in Tokyo morning, the pair rose to 1.3151 on dollar's weakness but then dropped to 1.3097 in European morning on the steep fall in eur/gbp. However, cross buying of euro versus other currencies pushed the pair to 1.3151 in New York morning and after moving narrowly, euro edged higher to 1.3155 ahead of New York close.
Although the British pound dropped briefly to 1.5197 at Asian open, the pair rose in tandem with euro to 1.5250 in Asian morning before retreating to 1.5216. Later, cross buying of sterling versus euro pushed the pair higher to 1.5282 in European morning before trading narrowly in New York session.
The Australian dollar rose to 0.9207 in European session after China central bank scrapped bank lending rate floor and controls on bill discount rates.
In other news, G20 draft communique said 'near-term challenges are to boost jobs and growth, reduce financial market fragmentation; G20 calls for acceleration of banking reforms in Europe, continued monetary support where appropriate; G20 agrees that exchange rate should be allowed to adjust to fundamentals; surplus economies should boost domestic sources of growth, deficit economies improve competitiveness.'
Data to be released next week :
U.S. Chicago PMI, existing home sales on Monday.
France consumer confidence, U.K. mortgage approvals, EU consumer confidence, Canada retail sales, U.S. retail sales, house price index on Tuesday.
New Zealand trade balance, export, import, Australia CPI, Japan trade balance, export, import, China HSBC manufacturing PMI, France Manufacturing PMI, Service PMI, German Manufacturing PMI, Service PMI, EU Manufacturing PMI, Service PMI, U.K. CBI industrial trend, U.S. Markit PMI, New home sales on Wednesday.
New Zealand rate decision, German IFO business climate, current assessment, Italy consumer confidence, U.K. GDP, U.S. jobless claims, durable good on Thursday.
Japan CPI, France consumer confidence, U.S. University of Michigan consumer confidence on Friday.
Yen gains and then falls in late New York ahead of Japan election
The Japanese yen traded in volatile fashion against dollar on Friday as investors await the outcome of Japan's weekend upper house elections.
Earlier in Asia, although the greenback rose above Thursday's top at 100.66 to 100.87 at Tokyo open, the pair then briefly but tumbled to session low 99.80 due to the selloff in Nikkei-225. However, price staged a recovery to 100.47 in European morning and then traded narrowly in New York session before rising back to 100.66 on renewed cross-weakness in yen as Nikkei futures gained 140 points.
Despite euro's brief retreat to 1.3089 in Tokyo morning, the pair rose to 1.3151 on dollar's weakness but then dropped to 1.3097 in European morning on the steep fall in eur/gbp. However, cross buying of euro versus other currencies pushed the pair to 1.3151 in New York morning and after moving narrowly, euro edged higher to 1.3155 ahead of New York close.
Although the British pound dropped briefly to 1.5197 at Asian open, the pair rose in tandem with euro to 1.5250 in Asian morning before retreating to 1.5216. Later, cross buying of sterling versus euro pushed the pair higher to 1.5282 in European morning before trading narrowly in New York session.
The Australian dollar rose to 0.9207 in European session after China central bank scrapped bank lending rate floor and controls on bill discount rates.
In other news, G20 draft communique said 'near-term challenges are to boost jobs and growth, reduce financial market fragmentation; G20 calls for acceleration of banking reforms in Europe, continued monetary support where appropriate; G20 agrees that exchange rate should be allowed to adjust to fundamentals; surplus economies should boost domestic sources of growth, deficit economies improve competitiveness.'
Data to be released next week :
U.S. Chicago PMI, existing home sales on Monday.
France consumer confidence, U.K. mortgage approvals, EU consumer confidence, Canada retail sales, U.S. retail sales, house price index on Tuesday.
New Zealand trade balance, export, import, Australia CPI, Japan trade balance, export, import, China HSBC manufacturing PMI, France Manufacturing PMI, Service PMI, German Manufacturing PMI, Service PMI, EU Manufacturing PMI, Service PMI, U.K. CBI industrial trend, U.S. Markit PMI, New home sales on Wednesday.
New Zealand rate decision, German IFO business climate, current assessment, Italy consumer confidence, U.K. GDP, U.S. jobless claims, durable good on Thursday.
Japan CPI, France consumer confidence, U.S. University of Michigan consumer confidence on Friday.
Recommended Content
Editors’ Picks
AUD/USD dips below 0.6600 following RBA’s decision
The Australian Dollar registered losses of around 0.42% against the US Dollar on Tuesday, following the RBA's monetary policy decision to keep rates unchanged. However, it was perceived as a dovish decision. As Wednesday's Asian session began, the AUD/USD trades near 0.6591.
EUR/USD lacks momentum, churns near 1.0750
EUR/USD cycled familiar levels again on Tuesday, testing the waters near 1.0750 as broader markets look for signals to push in either direction. Risk appetite was crimped on Tuesday after Fedspeak from key US Federal Reserve officials threw caution on hopes for approaching rate cuts from the Fed.
Gold eases toward $2,310 amid a better market mood
After falling to $2,310 in the early European session, Gold recovered to the $2,310 area in the second half of the day. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.5% and helps XAU/USD find support.
Bitcoin price coils up for 20% climb, Standard Chartered forecasts more gains for BTC
Bitcoin (BTC) price remains devoid of directional bias, trading sideways as part of a horizontal chop. However, this may be short-lived as BTC price action consolidates in a bullish reversal pattern on the one-day time frame.
Living vicariously through rate cut expectations
U.S. stock indexes made gains on Tuesday as concerns about an overheating U.S. economy ease, particularly with incoming economic reports showing data surprises at their most negative levels since February of last year.