[B]Market Review[/B] - 26/11/2013 [I]22:01GMT [/I]
[B]Euro strengthens after weak U.S. consumer confidence[/B]
The single ended higher against the greenback on Tuesday after a weak consumer confidence report fanning ongoing expectations for the Federal Reserve to keep its dollar-weakening monetary stimulus programs in place through early 2014.
The single currency rebounded to 1.3541 in Asian morning and traded sideways until European open. Price found renewed buying in European morning and rose to 1.3571 before retreating in New York morning to 1.3521, however, release of weaker-than-expected U.S. consumer confidence data prompted another round of euro buying, price later climbed to sessions high of 1.3575.
The U.S. Conference Board reported on Tuesday that its index of U.S. consumer confidence declined to 70.4 in November from 72.4 in October, lower than the market’s expectation of 72.6.
Versus the Japanese yen, although the greenback traded sideways in Asia and Europe after falling to 101.34 at Asian open, renewed selling interest capped intra-day recovery, price fell from 101.65 in New York morning to 101.15 after the weak U.S. consumer confidence report.
The British pound moved in volatile fashion on Tuesday. Despite a sharp rebound from 1.6146 to 1.6194 in European trading due to comments by BoE Governor Mark Carney, price pared gains n fell to session low at 1.6138 in New York morning but only to rise to a fresh intra-day high of 1.6219 in New York afternoon on dollar’s broad-based weakness b4 easing.
On the data front, Italy consumer confidence in Nov came in at 98.3, vs the forecast of 97.5.
In other news, BoE’s Carney in a parliament hearing, said 'has not seen evidence that businesses are confused by forward guidance; mkts have not priced in interest rate moves in UK that economic recovery might suggest in absence of forward guidance.
[B]Data to be release on Wednesday : [/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.