[B]Market Review[/B] - 23/11/2013 01:46GMT
[B]Euro rises on upbeat German Ifo busiess confidence[/B]
The single currency gained against the U.S. dollar and yen after German business confidence climbed to its highest level since April 2012, damping early speculation the European Central Bank will reduce its record low interest rate anytime soon.
Earlier in Asia, despite trading sideways below Thursday’s high of 1.3487, the single currency found buying interest at 1.3463 and started to ratchet higher at European open, euro jumped versus the U.S. dollar and yen after the release of better-than-expected German Ifo business confidence and climbed to 1.3539 in New York morning and later to sessions high of 1.3560 near New York, just below this week’s high at 1.3580 on Wednesday. Euro also rallied to a fresh 4-year peak of 137.37 versus the Japanese yen.
German IFO business climate in November came in at 109.3, better than street forecast of 107.7.
The greenback remained firm against the yen on Friday, after positive U.S. economic reports on Thursday fuelled further expectations for the Federal Reserve to begin scaling back its stimulus program in the near future. Dollar resumed its recent ascent and rose to fresh 4-1/2 month high at 101.36 in Australia, however, price pared intra-day gains on profit-taking and retreated to session low at 100.96 at European open. Later, dollar found renewed buying interest and rebounded to 101.35 near New York close,
The British pound also traded sideways in Asia and briefly edged up to 1.6217 in European morning before trading in choppy fashion in New York morning. Later, cable rose in tandem with euro in New York afternoon trading and climbed marginally higher to 1.6219.
On the data front, German GDP in Q3 came in at 0.3% m/m n 1.1% y/y, same as expectation. German Ifo current assessment and expectation in November came in at 111.2 and 106.3 respectively, stronger than the forecast of 111.6 n 104.0 respectively. In other news, ECB President Mario Draghi said ‘situation in euro area has improved greatly, still face challenges; need to secure recovery; price stability mandate works in both directions; interest rates are low because the economy is weak.’
[B]Data to be released next week : [/B]
France business climate, U.K. BBA loans for house purchase, U.S. pending home sales on [B]Monday. [/B]
Japan MPC minutes, Italy consumer confidence, U.S. housing start, building permits, S&P home price index, house price index and consumer confidence on [B]Tuesday. [/B]
New Zealand trade balance, exports, imports, Swiss consumer confidence, France consumer confidence, Germany consumer confidence, U.K. GDP, CBI distributive trade, U.S. jobless claim, durable goods, Chicago Fed index, Chicago PMI, University of Michigan consumer confidence and leading indicators on [B]Wednesday. [/B]
New Zealand ANZ Business confidence, Japan retail sales, Swiss GDP, U.K. Lloyds business barometer, EU Business climate, economic sentiment, consumer confidence, Germany HICP, CPI, unemployment change unemployment rate, Canada PPI. U.S. financial market is closed [B]Thursday [/B]due to Thanksgiving Day holiday.
Japan manufacturing PMI, household spending, unemployment rate, CPI, industrial production, housing starts, construction orders, U.K. consumer confidence, Mortgage approvals, France PPI, Italy unemployment rate, CPI, HICP, EU unemployment rate CPI, Canada GDP on [B]Friday.[/B]