[B]Market Review[/B] - 12/08/2013 [I]22:24GMT[/I]
[B]Dollar rises broadly on upbeat U.S. data expectations[/B]
The greenback strengthened against other currencies on Monday as investors bet the U.S. economic data this week will support the Federal Reserve to reduce stimulus sooner rather than later.
Versus the Japanese yen, although the greenback dropped initially to 95.93 in Australia due to cross-buying in yen on risk aversion after the release of weaker-than-expected Japanese GDP data (0.6% q/q versus the forecast of 0.9%), the pair rebounded to 96.64 in Asia on comments from Japan’s PM Abe. Dollar’s broad-based strength lifted dollar to 96.91 in New York morning but price retreated to 96.40 later in the day due to rebound in euro before stabilising.
Japanese Prime Minister Abe said ‘economy improving steadily due to government’s economic policies since last year; will tackle economy with eye on growth policies towards autumn.’
Although the single currency rebounded from New Zealand low at 1.3315 to 1.3345 in Australia, the pair edged lower to 1.3318 in Asia and then dropped further to 1.3278 in New York morning on dollar’s broad-based strength together with the cross selling of euro versus yen and sterling before staging a recovery on short-covering.
In other currency, despite cable’s brief recovery from 1.5486 to 1.5522 in Australia, renewed selling interest pressured the pair and the British pound dropped in tandem with euro to 1.5462 in European morning and then 1.5459 in late New York…
[B]Data to be released on Tuesday:[/B]
Australia NAB business confidence, Japan Machinery order, German CPI, HICP, Zew economic sentiment, current condition, U.K. CPI, RPI, PPI, EU industrial orders, ZEW economic sentiment, U.S. import price index, export price index, retail sales, business inventories.