[B]Market Review[/B] - 07/04/2014 [I]22:39GMT [/I]
[B]Euro rebounds on short covering after Friday’s U.S. payrolls missed estimate[/B]
The greenback weakened against majority of its peers on Monday as the release of weaker-than-expected U.S. jobs data on Friday continued to weigh on the dollar.
The single currency traded sideways in Asia and rebounded to 1.3721 in early European morning. Price continued to trade with a firm undertone and rose to an intra-day high at 1.3748 in New York morning after comments from ECB policymakers signaled deflation risks within the Eurozone are contained.
ECB’s Yves Mersch said ‘QE is a theoretical concept, there is a long way to go to any practical steps; there is conventional room to ease policy; do not see imminent risk of deflation but ready to prepare for it.’
ECB’s Vitor Constancio said ‘possible that we will see an uptick in inflation in April, need to see if base-line scenario for inflation outlook has changed; we are in a situation of great concern about inflation.’
Versus the Japanese yen, the greenback remained under pressure in Asia and dropped to session low at 103.00 ahead of European open. Despite a rebound to 103.30 in European morning, renewed selling there knocked price lower to 103.00 again. However, dollar found support there and recovered to 103.27 in New York morning before stabilizing.
The British pound traded inside a narrow range in Asia and edged lower to session low at 1.6566 in early European morning. However, renewed buying lifted the pair and cable rose to an intra-day high at 1.6623 in New York morning.
On the data front, Euro zone April Sentix investor confidence came in at 14.1, better than the forecast of 13.9. German industrial production in Feb came in at 0.4% m/m n 4.8% y/y, better than the forecast of 0.3% n 4.7%.
Data to be released [B]on Tuesday: [/B]
Australia NAB business confidence, Japan current account, BoJ rate decision, Swiss unemployment rate, retail sales, France trade balance, U.K. industrial production, manufacturing production, Canada housing starts and building permits.