[B]Market Review[/B] - 01/04/2014 [I]23:42GMT [/I]
[B]Euro edges higher to 1.3815 on Tuesday[/B]
The single currency gained against the greenback on Tuesday as Monday’s comments from Yellen continued to weigh on the dollar and due to the release of better-than-expected German unemployment data.
Despite trading sideways in Asia, the single currency rose to 1.3802 in European morning after German unemployment came in better-than-expected. Price edged higher to an intra-day high at 1.3815 at New York open on continued weakness in dollar after Yellen’s dovish comments on Monday. Later, euro pared some of its gains and retreated to 1.3790 in New York morning before stabilizing.
Germany Feb unemployment rate came in at 6.7%, better than the forecast of 6.8%.
Versus the Japanese yen, the greenback traded with a firm undertone in Asia and continued to strengthen throughout European session on yen’s broad-based weakness as Japan’s sales tax rose today. Dollar eventually hit an intra-day high at 103.71 in New York afternoon.
Although the British pound traded sideways in Asia and edged higher to session high at 1.6675 in early European morning, price came under selling pressure after data showed a drop in U.K. manufacturing PMI in March and fell to an intra-day low at 1.6619 at New York open. However, cable pared intra-day losses and recovered to 1.6653.
U.K. manufacturing PMI came in at 55.3, lower than the forecast of 56.7.
In other news, Eurogroup’s Dijsselbloem said ‘Greece has an ambition not to ask for another bailout, but it is too early to say if this will be possible; France is well aware of its commitments, was already given more time, new French Cabinet will be aware of its obligations.’
On the data front, Italy unemployment rate came in at 13.0%, weaker than the forecast of 12.9%, previous reading is revised to 12.9%. Germany Mar manufacturing PMI came in at 53.7, weaker than the forecast of 53.8. U.S. ISM manufacturing rose to 53.7 from 53.2 previously.
[B]Data to be released on Wednesday: [/B]
Australia building approvals, U.K. PMI construction, EU PPI, U.S. ADP employment change, ISM New York, factory orders.