[B]Market Review[/B] - 22/10/2013 [I]20:11GMT [/I]
[B]Dollar tumbles after disappointing U.S. jobs report[/B]
Dollar fell broadly against its major peers after the release of delayed U.S. September’s jobs report which showed 148,000 jobs were added to the market, fewer than the economists’ expectation of 180,000, adding speculation that the Federal Reserve will delay its tapering measures.
U.S. non-farm payroll in September came in at 148K, worse than the expectation of 180K, previous reading was revised to 193K. U.S. unemployment rate in September dropped to 7.2%, better than the forecast of 7.3%.
The single currency traded narrowly in Asian session and found support at 1.3665 in European morning. Euro jumped to 1.3749 after the release of weaker-than-expected U.S. non-farm payrolls, and then climbed to near 2-year high at 1.3792 in New York afternoon before easing.
Versus Japanese yen, the greenback rose to 98.37 in Asian trading and then moved marginally higher to 98.40 in European morning. Dollar tanked to 97.86 after release of disappointing U.S. jobs data, however, renewed buying interest there lifted price to an intra-day high of 98.48 in New York morning before retreating to 97.99 in New York afternoon.
The British pound initially retreated to 1.6116 in Asian session but renewed buying interest there lifted price higher in European session. Later, cable jumped to 1.6213 after U.S. job data and then rose to a session high at 1.6248 in late New York.
In other news, ECB’s Luc Coene says ‘further drop in inflation might warrant policy action; but too early now for ECB action; narrowing ECB interest rate corridor could limit volatility in market rates; do not see immediate tapering by the U.S. Fed.’
Bank of England’s Deputy Governor Charlie Bean says ‘business surveys point to U.K. growth close to 2% for H2 2013; U.K. recovery sustainable because banks now well-placed to lend and euro area no longer in existential crisis; market interest rates have risen more in U.K. than U.S. or euro zone due to stronger economic data here; fact that U.K. yield curve has steepened far less recently than past recoveries would suggest may indicate that forward guidance has had some effect on short end.’
[B]On the data front, data to be released on Wednesday : [/B]
EU consumer confidence, France business climate, U.K. BOE releases MPC minutes, BOE MPC vote, BBA loans for house purchase, U.S. house price index, Canada BOC rate decision.