[B]Market Review[/B] - 09/11/2013 [I]02:13GMT [/I]
[B]Dollar rallies after U.S. payrolls beat estimates[/B]
Dollar strengthened against other currencies on Friday after the release of stronger-than-expected U.S. non-farm payrolls fuelled renewed speculation the Federal Reserve could soon begin tapering its stimulus program. U.S. non-farm payroll in October came in at 204K, much higher than the economists’ forecasts of 125K, previous reading was revised higher to 163K from 148k.
The single currency retreated to 1.3389 ahead of European open due to the downgrade of France sovereign credit rating by S&P, however, price quickly rebounded and ratcheted higher to 1.3432 in European morning. Euro briefly climbed to 1.3438 in New York morning. The pair tanked to session low of 1.3318 after release of stronger-than-expected U.S. jobs report, however, active short-covering above Thursday’s 7-week low at 1.3295 lifted the pair in New York afternoon. Euro last traded around 1.3370 near New York close.
S&P lowered France sovereign credit rating to AA from AA+. S&P revised France sovereign credit outlook to stable from negative.
Versus Japanese yen, the greenback traded narrowly in Asian and European morning sessions. Dollar later retreated to 97.97 in New York morning and then jumped to an intra-day high of 99.22 on strong U.S. job data before stabilizing in New York afternoon.
The British pound traded narrowly in Asian session and then fell to 1.6060 in European morning. Cable later tumbled to intra-day low at 1.5957 in New York morning after release of strong U.S. jobs report.
In other news, French President Francois Hollande said economic policy his government is pursuing is the only one that can ensure France’s credibility; government will take all necessary saving measures without endanger France’s Welfare model; low market interest rates are testament to France’s credibility.
On the data front, University of Michigan confidence in November came in at 72.0, weaker than market forecast of 74.5. France industrial production in September came in at -0.5% m/m and -0.9% y/y, versus the expectation of 0.1% and -0.9%, previous reading was revised to 0.7% n -2.0% respectively. France manufacturing production in September came in at -0.7% m/m and -1.3% y/y, stronger economists’ forecast of 0.4% n -1.1%, previous reading is revised to 0.9% and -2.7% respectively.
[B]Data to be released next week : [/B]
Japan current account, Economic watch DI, Australia home loans, Italy industrial production on [B]Monday[/B]. Financial markets in France, Canada and U.S. will be closed due to public holiday.
Australia NAB business condition, NAB business confidence, Japan tertiary industry index, consumer confidence, machine tools orders, U.K. RICS house prices, CPI, RPI, PPI, ONS house price, Germany CPI, HICP, Italy CPI, HICP, U.S. Chicago Fed index, Redbook retail sales on [B]Tuesday[/B].
Australia Westpac consumer confidence, Japan machinery orders, domestic CGPI, U.K. claimant count, ILO unemployment rate, average earnings 3 months, BoE releases quarterly inflation report, EU industrial production, U.S. Fed budget on [B]Wednesday[/B].
New Zealand business PMI, ANZ consumer confidence, Japan GDP, industrial production, capacity utilisation, France GDP, Germany GDP, France HICP, CPI, Italy GDP, U.K. retail sales, EU GDP, U.S. jobless claims, Canada new housing price index, trade balance, exports, imports on [B]Thursday[/B].
Italy trade balance, current account, EU CPI, U.S. export price index, import price index, Empire State manufacturing, industrial production, capacity utilisation, wholesale inventories, wholesale sales and Canada existing home sales on [B]Friday[/B].