[B]Market Review[/B] - 11/09/2013 22:22GMT
[B]Euro strengthens against dollar on easing concerns over Syria[/B]
The single currency rose to a 1-1/2 week high against the dollar on Wednesday as concerns over Syria eased after the White House confirmed that President Obama is in talks with France and Britain about getting a United Nations resolution to hold Syria to its apparent commitment to place its chemical weapons under international control.
During the day, despite euro’s initial drop from Asian high of 1.3282 to 1.3244 in European morning, improved risk appetite due to easing concerns over Syria lifted price higher in New York morning and euro later rose to a fresh 1/2-week peak at 1.3325 before easing.
Versus the Japanese yen, although dollar extended gain to a fresh 7-week high of 100.62 in Asia following the rally in previous session, profit-taking pressured price from there and dollar later ratcheted lower in European trading to 100.08 and fell further to 99.79 in New York on broad-based weakness in greenback before stabilising.
The British pound traded narrowly below Tuesday’s high of 1.5745 in Asia but found support at 1.5719. Cable later rallied to a 7-month peak at 1.5827 after unexpectedly strong U.K. jobless claim data in European morning but only to retreat to 1.5755 on renewed cross-selling in sterling. Later, dollar’s broad-based weakness lifted pound again in New York trading and cable penetrate 1.5827 to session high at 1.5829.
U.K. Office for National Statistics reported on Wednesday that unemployment rate in the U.K. declined to 7.7 percent in the period from May to July, from 7.8 percent in the February to April period. Meanwhile, the claimant count change declined by 32,600 in August, compared to a decline of 36,300 in the previous month, but better than market’s expectations of a drop of 21,000.
In the other news, BOJ board member Ishida said earlier on Wednesday that ‘Japan’s economy expected to continue moderate recovery; government efforts to restore confidence in Japan’s economic growth; exports must start serving more as driver of Japan’s econ growth; expect to see clear CPI rises for the being; price rises may broaden if personal consumption remains strong; rise in regular pay, rather than bonuses, more effective in boosting consumer spending; Fed’s tapering may weigh on other countries’ growth by raising long-term interest rates; econ recovery won’t be sustained unless household income rises in tandem with price gains.’
[B]Data to be released on Thursday: [/B]
New Zealand RBNZ rate decision, Australia employment change, unemployment rate, Japan machinery orders, German WPI, France HICP, CPI, Italy industrial production, CPI, HICP, EU industrial production, Canada new housing price index, U.S. jobless claims, import price index, export price index, and Fed budget.