[B]Market Review[/B] - 09/12/2013 [I]21:15GMT[/I]
[B]Euro rises to fresh 5-week high of 1.3748[/B]
The single currency rose to a fresh 5-week high of 1.3748 and a fresh 5-year high of 141.94 against the dollar and the Japanese yen respectively on Monday. U.S. dollar was broadly lower as the latest U.S. jobs report, released on Friday, dampened safe haven demand for the dollar and the yen.
During the day, euro followed Friday’s rally on Monday and opened higher to a fresh 6-week high of 1.3748 against the dollar and extended recent upmove against the yen to 141.54 in New Zealand and then 141.94 in late New York. Euro retreated briefly to to 1.3695 and 140.99 respectively ahead of European open on profit-taking. Later, euro rebounded to 1.3746 in late New York due to active cross selling in jpy.
Versus the Japanese yen, dollar rose to 103.22 ahead of Asian open Monday and then retreated to 102.89. Later, U.S. dollar rose again to 103.35 in late New York on renewed cross selling in Japanese yen.
Although cable opened lower at 1.6316 in Monday’s New Zealand trading, renewed risk appetite after last Friday’s upbeat U.S. non-farm payrolls report for November continued to support the pair and sterling later ratcheted higher to 1.6393 in early European trading and then 1.6433 in later New York before easing.
On the data front, reports from German showed on Monday that industrial production in October dropped by 1.2% month/month versus median forecast of an increase of 0.8%.
In other news, ECB’s Mersch said at a financial conference in Frankfurt on Monday that ‘euro zone inflation to remain very subdued; sees no deflationary risks; have necessary tools for further monetary policy measures; could buy government bonds, but this would have immense political, juridical and economic challenges; buying private instruments could be problematic as would shift risk to tax payers; risk that negative deposits rates would increase borrowing costs; monetary policy can only buy time for reforms, if this time is not used, monetary policy cannot help.’
[B]Data to be release on Tuesday : [/B]
Australia home loans, business confidence, business condition, Japan Tertiary industry index, consumer confidence, , machine tools orders, China industrial production, fixed assets investing urban, retail sales, U.K. RICS house price, industrial production, manufacturing production, trade balance, France industrial production, manufacturing production, Italy industrial production, manufacturing production, GDP, U.S. retail sales, wholesale inventories, wholesale sales.