[B]Market Review[/B] - 17/08/2013 [I]06:35GMT[/I]
[B]Data to be released this week: [/B]
[B]Monday[/B]: Japan Trade balance, import, export, leading indicator, U.K. Rightmove house price.
[B]Tuesday[/B]: Australia RBA minutes, Japan all industry index, Germany PPI, Canada wholesale sales, U.S. Chicago Fed index, retail sales.
[B]Wednesday[/B]: Australia leading indicator, U.K. PSNCR, public sector net borrowing, CBI distribute trades, U.S. existing home sales.
[B]Thursday[/B]: Japan machine tools orders, China HSBC manufacturing PMI, Swiss trade balance, France manufacturing PMI, service PMI, German manufacturing PMI, service PMI, EU manufacturing PMI, service PMI, Canada CPI, U.S. jobless claims, Markit PMI, house price index, leading indicators.
[B]Friday[/B]: Germany GDP, export, import, U.K. GDP, BBA mortgage approvals, EU consumer confidence, Canada CPI, U.S. new home sales.
[B]Euro pares gain on Friday due to profit-taking[/B]
The single currency erased its recent gain against the dollar on Friday as investors closed their previous long positions below 1.3400 level after the rally on Thursday.
Although the single currency edged lower from Thursday’s top at 1.3363 to 1.3326 in European morning, the pair penetrated 1.3363 to session high at 1.3380 in New York morning due to dollar’s broad-based weakness after the release of weak U.S. housing starts and building permits (5.9% and 2.7%, less than the forecasts of 7.7% and 2.9% respectively) but only to retreat to 1.3312 later in the day on weekend adjustment.
Versus the Japanese yen, the greenback rebounded strongly from Thursday’s low at 97.00 to 97.56 in Asian morning. However, the pair ratcheted lower to 97.27 in Europe and then 97.19 in New York morning after the release of weak U.S. housing starts and building permits before staging a rebound to 97.78.
The British pound retreated from Thursday’s top at 1.5652 in tandem with euro and dropped to 1.5618 in European morning before renewed buying interest pushed the pair above 1.5652 to a fresh 7-week top at 1.5657 in New York morning, however, profit-taking pressured price later and cable fell
to 1.5608 and then moved narrowly in U.S. afternoon.
On the data front, U.S. University of Michigan consumer index came in at 80.0, worse than the forecast of 85.2. Euro zone trade balance in Jun came in at 17.3B, previous reading was revised to 14.5B. CPI Final in Jul was released at -0.5% m/m and 1.6% y/y, same as forecast.