[B]Market Review[/B] - 29/11/2013 [I]22:01GMT [/I]
[B]Euro rises to 1.3622 after data eases ECB concern before retreating on profit-taking[/B]
The single currency rose to a fresh near 4-week high at 1.3622 in Asian morning Friday as euro zone economic data dented speculation on further monetary easing by the European Central Bank at next week’s monthly monetary policy meeting, however, profit-taking pressured price to a low at 1.3597 in European morning, weighed by the downgrade of Netherlands’ credit rating. Euro further weakened to 1.3580 in late New York trading.
S&P lowered Netherlands rating to AA+ from AAA with a stable outlook and said ‘Netherlands growth prospects weaker than expected; Netherlands real GDP per capita trend growth below peers.’
Versus the Japanese yen, although the greenback resumed its recent ascent and rose to a fresh 6-month peak at 102.61 at Asian open, price retreated to an intra-day low at 102.12 at European open and traded sideways in NY session.
The British pound edged higher to a fresh 10-1/2 month high at 1.6375 in Asian morning, however, cable pared intra-day gains and retreated to session low at 1.6315 in European morning before rallying above this year’s high at 1.6380 (Jan) to 1.6385 in New York midday.
On the data front, Italy unemployment rate in Oct came in as 12.5% m/m, same as the expectation. Germany retail sales in Oct came in at -0.8% m/m n -0.2% y/y, weaker than the expectation of 0.5% n 1.4%, previous reading was revised to -0.2% n 0.3% respectively.
In other news, Italy PM Enrico Letta says ‘will seek new confidence vote in parliament to reinforce reform programme.’
[B]Data to be released next week :[/B]
Australia building approvals, Japan business capital expenditure, China HSBC manufacturing PMI, U.K. Hometrack housing survey, manufacturing PMI, Italy manufacturing PMI, France manufacturing PMI, Swiss PMI, Germany PMI, EU manufacturing PMI, U.S. manufacturing PMI, ISM manufacturing, and construction spending on [B]Monday[/B].
Australia retail sales, RBA rate decision, China non-manufacturing PMII, U.K, RBC retail sales, construction PMI, EU PPI and U.S. retail sales on [B]Tuesday.[/B]
Australia GDP, China HSBC services PMI, Swiss industrial production, U.K. RBC shop price index, services PMI, Germany services PMI, France service PMI, EU GDP, retail sales, service PMI, U.S. ADP employment, Trade balance, ISM non-manufacturing, new home sales, Fed releases Beige Book, Canada trade balance, import, export and rate decision on [B]Wednesday. [/B]
Australia trade balance, France unemployment rate, U.K. Lloyds employment confidence, BoE rate decision, EU ECB rate decision, U.S. jobless claims, GDP, personal consumption, PCE, durable goods, factory orders, and Canada Ivey PMI on [B]Thursday. [/B]
[B]Friday,[/B] Japan leading indicators, France trade balance, Swiss CPI, Germany factory orders, U.S. non-farm payrolls, private payrolls, unemployment rate, average hourly earnings, personal income, personal spending, PCE, University of Michigan consumer confidence and Canada unemployment rate.