[B]Market Review [/B]- 28/11/2013 [I]20:50GMT [/I]
[B]U.S. dollar rises against Japanese yen on risk appetite[/B]
The Japanese yen resumed its recent losing streak and weakened against the U.S. dollar and euro on Thursday as U.S. markets were closed for Thanksgiving holiday.
Versus the Japanese yen, despite a brief pullback from Australian high at 101.28 to session low at 101.94 in Asian morning, renewed buying lifted the pair and the greenback rose above said top to an intra-day high at 102.37 at European midday on broad-based selling of the yen.
Despite brief rebound to 1.3588 ahead of European open, the single currency retreated to 1.3568 in European morning. However, euro rose once again to an intra-day high at 1.3618 before easing to 1.3588.
The British pound rebounded to 1.6326 in Asian morning before retreating, however, despite a brief spike above Wednesday’s high at 1.6331 to
1.6346, price dropped to 1.6298. Renewed buying there lifted cable and the pair rose to a fresh 10-1/2 month high at 1.6358 after European closing, supported by comments from Bank of England Governor Mark Carney.
BoE’s Carney said ‘UK banks have bolstered capital positions by 20 billon sterling since June; MPC has judged that FLS changes will have no material impact on monetary policy; new measures will contribute to constructive evolution of housing market; FPC acting to create new macro prudential tool to vary affordability criteria mortgage borrowers must meet; by acting in graduated fashion on housing market, we reduce risk large intervention needed later.’
On the data front, Germany unemployment change in November came in at 10K, vs the forecast of 0K, previous reading was revised to 3K. Germany unemployment rate in November came in at 6.9%, same as the expectation. Swiss GDP in Q3 came in 0.5 Q/Q nand1.9% Y/Y, stronger than the forecast of 0.4% and 1.8% respectively.
[B]Data to be released on Friday: [/B]
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.