[B]Market Review [/B]- 04/01/2014 [I]01:19GMT [/I]
[B]Euro falls broadly on broad-based demand for USD
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The single currency fell to a one-month low against the U.S. dollar on Friday due to renewed broad-based demand for the safe-haven dollar despite positive Spanish unemployment data released earlier in the trading session.
Earlier in the day, euro edged lower after meeting selling interest at 1.3673 in Australia and price briefly penetrated Thursday’s low at 1.3630 to 1.3629 in European morning before staging a minor recovery. However, active cross-selling of euro on risk-aversion in New York session pressured price again and the single currency subseqeuntly weakened to a fresh 1-month low at 1.3582 and price traded near 1.3590 at New York close.
Versus Japanese yen, dollar tumbled from 104.87 to as low as 104.08 in Asian trading due to a 2% decline in the Nikkei futures. Later, dollar recovered to 104.54 in Europe as Nikkei futures turned positive. The greenback later pared all its intra-day loss in New York session and climbed to 104.89 near New York close.
Although cable found support at 1.6422 in Asian trading and then rebounded to 1.6474 in European morning after mixed U.K. economic reports, renewed cross-selling of sterling pressured price lower ahead of New York open and pound later fell further to 1.6395 in New York morning.
The Market U.K. construction PMI for December came in at 62.1 versus forecast of 62.0 but down from November’s reading of 62.6. A separate report showed that the number of new home loans approved in the U.K. reached the highest monthly total in November in more than five years to 70,758, while the amount of mortgage lending in money terms declined from previous month’s 1.22 billion pounds to 0.91 billion pounds (lowest since May).
In other news, Fed’s Plosser says ‘despite cut to bond-buying, Fed balance sheet still growing “at fairly rapid clip”; need to return balance sheet to predominantly all treasuries portfolio; concerned more with too-high inflation than too-low given $ 2.4 trillion in excess bank reserves; warns interest rates could rise “fairly quickly” if banks quickly release reserves; very hard to know accumulated distortions of ultra low rates for up to 6 years.’
[B]Data to be released next week : [/B]
China HSBC services PMI, Germany export, import, trade balance, service PMI, CPI, HICP, Italy service PMI, EU Sentix investors’ confidence, France service PMI, U.K. service PMI, U.S. durable goods, factory orders, ISM non-manufacturing index, Canada PPI, CPI [B]on Monday.[/B]
Australia trade balance, France consumer confidence, Germany unemployment change, unemployment rate, EU PPI, CPI, U.S. trade balance, Redbook retail sales, Canada trade balance, import, export, Ivery PMI [B]on Tuesday. [/B]
U.K. BRC retails sales, Germany trade balance, export, import, CPI, current account, Italy unemployment rate, EU retail sales, unemployment rate, Germany factory orders, U.S. ADP unemployment change [B]on Wednesday. [/B]
Australia retail sales, building approvals, France trade balance, U.K. trade balance, industrial production, BOE rate decision, EU business climate, economic sentiment, consumer confidence, ECB rate decision, Canada housing starts, building permit, new housing price index, U.S. jobless claim [B]on Thursday. [/B]
Japan leading indicators, U.K. RBC retail sales, industrial production, manufacturing production, France industrial production, manufacturing production, Swiss unemployment rate, CPI, Canada unemployment rate, U.S. non-farm payrolls, private payrolls, unemployment rate, average hourly earning, wholesale inventories, wholesale sales [B]on Friday. [/B]