[B]Market Review[/B] - 18/11/2013 [I]21:07GMT [/I]
[B]Dollar and yen falls broadly on risk appetite due to China reforms[/B]
U.S. dollar weakened broadly against major currencies on renewed risk appetite after China announced its most sweeping economic and social reforms in nearly three decades.
China shares posted their biggest gain in more than two months on Monday. The China Enterprises Index of the top Chinese listings in Hong Kong soared 5.7%, the biggest daily gain since Dec. 1, 2011. European and U.S. stock markets also hit their highest levels since the start of 2008.
The greenback rose briefly to 100.39 against the Japanese yen in Asian morning before retreating to 99.78 in European morning on cross buying in jpy. The single currency continued to ratchet higher from November’s low at 1.3295 to as high as 1.3542 in New York morning before retreating to 1.3496 in late New York after comments from the Federal Reserve Bank of New York, William Dudley.
The British pound also rose versus U.S. dollar to fresh near 3-week high at 1.6149 in European morning before retreating to 1.6082 in late New York on profit-taking. The Australian and New Zealand dollars rose against U.S. dollar to 0.9419 and 0.8407 respectively in European morning due to renewed risk appetite before retreating in late New York.
In other news, the Federal Reserve Bank of New York, William Dudley, an influential U.S. central banker who has been one of the staunchest supporters of easy-money policies, on Monday said he was “getting more hopeful” on prospects for the beleaguered U.S. economic recovery. William pointed to an improvement in the labor market last month and better-than-expected gross domestic product (GDP) growth in the third quarter. He predicted a rise in economic growth next year and in 2015. William added later that the Federal Reserve has not yet seen enough U.S. economic growth momentum to convince policymakers of a sustained improvement in the labor market outlook.
Charles Plosser, president of the Philadelphia Fed, said in remarks prepared for delivery to the Risk Management Association, "we cannot continue to play this bond-buying game by ear and risk the Fed’s credibility while creating lingering uncertainty about the course of monetary policy;
Improved economic and labor market conditions suggest the U.S. central bank should set a fixed dollar amount on its current bond-buying program and end the program when that amount is reached.
[B]Tuesday[/B] will see the release of Australia RBA policy meeting minutes, Japan leading indicators, Germany ZEW economic sentiment, ZEW current condition, EU ZEW economic sentiment, U.S. Redbook and retail sales data.