[B]Market Review[/B] - 25/11/2013 [I]23:01GMT [/I]
[B]Yen falls to a fresh 6-month low against dollar on risk appetite[/B]
The Japanese yen fell to near 6-month low against the greenback on Monday due to improved risk appetite after an accord was struck to set limits on Iran’s nuclear program.
Dollar found renewed buying at 101.14 at Asian open and rose to a 6-month high at 101.92 at European open, however, profit-taking pressured price from there and dollar later dropped to 101.64 in European morning and then 101.58 in New York morning after release of lower-than-expected U.S. pending home sales (October), dollar later weakened to 101.40 near New York close before recovering.
The single currency retreated after failure to penetrate last Friday’s high of 1.3560 and remained under pressure in Asian session, dropped to 1.3508 in European morning. Despite a brief rebound to 1.3528 in New York morning, renewed cross-selling interest in euro capped recovery and price fell to session low at 1.3490 before staging a minor recovery in New York afternoon.
Although the British pound resumed its recent ascent and rose to a fresh 3-week high at 1.6241 in Australia, price retreated to 1.6184,
weighed by release of poor BBA mortgage approvals. Cable remained under pressure at New York trading and fell further to session low at 1.6134 before stabilizing.
BBA mortgage approvals came in lower-than-expected at 42.8K vs forecasts of 45.0K.
On the data front, France INSEE business climate (industry morale) in Nov came in at 98, better than the forecast of 97.
In other news, German Chancellor Angela Merkel said ‘Germany will only benefit if Europe does well; Europe is more important than internal market; must’t accept high unemployment in Europe.’
[B]Data to be release on Tuesday: [/B]
Japan MPC minutes, Italy consumer confidence, U.S. housing start, building permits, S&P home price index, house price index and consumer confidence.