[B]Market Review[/B] - 23/03/2014 [I]23:36GMT [/I]
[B]Euro ends slightly higher on dollar’s profit taking after Thursday’s gain[/B]
The single currency ended the day slightly higher against the greenback on Friday as investors sought clarity on the Federal Reserve’s stance on their monetary policy and pared some of Thursday’s gains on profit taking.
Although the single currency traded sideways in Asia and edged lower to session low at 1.3766 in early European morning, price rebounded to 1.3805 ahead of New York open, as data showed a record Eurozone current account surplus. Later, euro rose higher to an intra-day high at 1.3810 in New York morning before stabilizing.
EU current account came in at 25.3 billion euros, up from previous figure of 20.0 billion euros.
The British pound tracked euro’s intra-day movements closely and fell below Thursday’s 1.6480 low to a fresh 1-month low at 1.6475 in early European morning before rebounding to 1.6515 and trading sideways for the remainder of the day.
Versus the Japanese yen, the greenback traded sideways and fell sharply to session low at 102.01 in early European morning on broad-based buying of jpy. However, dollar pared its losses and recovered to 102.41 at New York open before trading narrowly.
In other news, Fed’s Kocherlakota said ‘he dissented at March’s FOMC meeting because guidance weakens Fed’s credibility to target 2% inflation; new rate guidance suggests Fed sees inflation below 2% as acceptable outcome; Fed’s new rate guidance does not communicate steps to move inflation rapidly up to 2%.’
Bank of England’s Dale said “he doesn’t know what will happen to interest rates in 6-12 months. BOE’s Dale said central banks should communicate what they know, which is their ‘reaction function’; central bankers should communicate state-contingent guidance, rather than time-contingent guidance.”
On the data front, EU consumer confidence came in at -9.3, better than forecast of -12.3.
[B]Data to be released next week: [/B]
China HSBC manufacturing PMI, France service PMI, manufacturing PMI, EU service PMI, manufacturing PMI, EU service PMI, manufacturing PMI, U.S. Chicago Nat activity index, Markit PMI [B]on Monday[/B]
France business confidence, German IFO business climate, current assessment, expect, U.K. CPI, RPI, PPI, ONS house price, BBA loans for house purchase, CBI reported sales, U.S. Redbook retail sales, house price index, S&P house price, consumer confidence New home sales [B]on Tuesday. [/B]
Germany Gfk consumer confidence, Swiss UBS consumption indicator, Italy retail sales, consumer confidence, U.S. durable goods [B]on Wednesday. [/B]
New Zealand trade balance, exports, import, France consumer confidence, Italy business confidence, economic sentiment, U.K. retail sales, U.S. GDP, personal consumption, core PCE, initial jobless claims, pending home sales [B]on Thursday. [/B]
Japan overall household spending, jobless rate, CPI, retail sales, France PPI, Italy PPI, U.K. Gfk consumer confidence, GDP, Lloyds business Barometer, current account, EU economic confidence, consumer confidence, business climate, Germany CPI, HICP, U.S. personal income, personal spending, PCE, university of Michigan consumer confidence [B]on Friday. [/B]