[B]Market Review[/B] - 09/09/2013 [I]22:25GMT[/I]
[B]Euro rallies after eurozone sentiment turns positive[/B]
The single currency strengthened on Monday after survey showed investor sentiment in the eurozone soared in September to the highest level since May 2011, amid easing concerns over the outlook for the region’s economy.
Sentix said its index of investor confidence improved to 6.5 in September from a reading of minus 4.9 in August, much better than the expectation of a minus 3.5.
During the day, euro traded narrowly below Friday’s high of 1.3189 in Asia after finding support at 1.3160 in New Zealand. Later, the release of surprised improvement in professional investor sentiment in eurozone pushed the single currency higher above said resistance level to 1.3221 in New York morning and then 1.3281 before easing.
Versus the Japanese yen, although dollar briefly rose to 100.11 in Australian trading due to the rally in Nikkei-225 index on improved sentiment after Tokyo won 2020 Olympics bid, profit-taking pressured price there and the pair fell in Asian trading to 99.34 in European morning. Later, broad-based selling of yen lifted price and dollar rebounded to 99.65 in New York morning and then moved sideways for rest of the session.
Cable surged in tandem with euro in European trading and rose above Friday’s high of 1.5681 to 1.5683. The British pound later penetrated August’s peak at 1.5718 in New York morning on dollar’s broad-based weakness to a fresh 2-1/2 month high at 1.5733 before easing.
In the other news, U.K.'s FinMin Osborne said ‘truly sustainable growth depends on sound public finances and well capitalised banks; government has more to come this autumn to reduce cost of energy and water bills, housing, transport and everyday financial services; will do more to ease household costs; just as inadvertent early tightening of monetary policy would be mistake, so would leaving it too late; 90-95% loan to value mortgages are part of aspirational society, not exotic weapons of financial mass destruction; evidence suggests government help to buy scheme will increase housing supply; most powerful tools to protect living standards are low mortgages rates and low taxes; re-launch of TSB bank earlier on Monday is another sign of progress for banking system; market moves since August vindicate need for forward guidance.’
[B]Data to be released on Tuesday: [/B]
Australia business condition, Japan Tertiary industry index and BoJ 7-8 meeting minutes, China industrial production, fixed assets investment urban, retail sales, France industrial production, manufacturing production, Italy GDP, U.K. RICS house price, Canada housing starts, U.S. Redbook retail sales on Tuesday.