[B]Market Review[/B]
[B]Data to be released this week [/B]:
[B]Monday[/B]: Japan GDP, domestic CGPI, industrial production, capacity utilization, France current account, Italy trade balance, Swiss retail sales, U.S. Fed budget.
[B]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.
[B]Wednesday[/B]: Australia consumer confidence, France GDP, HICP, CPI, U.K. BOE MPC minutes, claimant count, unemployment rate, average earning, Germany GDP, EU GDP, Swiss Zew index, U.S. PPI.
[B]Thursday[/B]: New Zealand PMI, consumer confidence, U.K. retail sales, U.S. jobless claim, empire state manufacturing, Net LT TIC flows, industrial production, capacity utilization, NAHB housing market index, Philadelphia Fed survey. Financial market in France will be closed for market holiday.
[B]Friday[/B]: EU current account, trade balance, CPI, Italy current account, U.S. housing starts, building permits, University of Michigan consumer confidence.
[B]Dollar rebounds on renewed speculation of Fed tapering[/B] : 10/08/2013 [I]01:12GMT[/I]
The greenback rebounded against majority of its peers except the yen Friday on speculation that its recent weakness was overdone and that the Federal Reserve may indeed start reducing its bond purchases as early as next month.
The single currency traded in a narrow range in Asia and edged higher to session high at 1.3390 at European open, however, failure to re-test Thursday’s 7-week top at 1.3401 knocked price lower in European morning. Euro eventually fell to session low at 1.3333 in New York afternoon on dollar’s strength.
Versus the Japanese yen, although dollar extended previous day’s rebound to 96.97 at Tokyo open, price weakened to 96.33 in Asian morning after a government report showed Japan’s national debt exceeded 1000 trillion yen. Despite a brief recovery to 96.81 in European morning, renewed selling pushed the pair lower and price later fell to session low at 96.12 near New York close, weighed down earlier by the release of weaker-than-expected U.S. wholesale inventories.
Japan’s outstanding public debt including borrowings reached a record 1,008.6 trillion yen ($10.46 trillion) as of June 30, up 1.7% from three months earlier.
U.S. wholesale inventories in Jun came in at -0.2% m/m, less than the forecast of 0.4%, previous reading is revised to -0.6%.
The British pound also traded sideways in Asia before edging up to session high at 1.5559 in European morning. However, failure to breach yesterday’s high at 1.5574 triggered profit-taking and price retreated to an intra-day low at 1.5497 in New York morning before trading in choppy fashion.
In other news, German EconMin Philipp Roesler said ‘economic output probably increased noticeably in second quarter; private consumption and investment in construction likely drove Q2 growth; expects industrial production to continue growing, albeit not too dynamically.’
On the data front, U.K. trade balance in Jun came in at -2.646B, narrower than the expectation of -3.80B, previous reading is revised to -4.09B. Japan consumer confident in Jul came in at 43.6, worse than the expectation of 45.0.