[B]Market Review[/B] - 11/11/2013 [I]19:39GMT [/I]
[B]Euro rebounds on active cross-buying
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The single currency strengthened against other currencies on Monday due to active short-covering together with cross buying in euro. However, trading was relatively thin due to public holidays in U.S. and France.
Euro found support at 1.3345 in Australia morning and ratcheted higher in European session on active-cross buying euro versus other currencies (eur/jpy rose from 132.21 to 133.16, euro/gbp gained from 0.8339 to 0.8396). The pair climbed to an intra-day high at 1.3416 after European closed.
Versus Japanese yen, the greenback met selling interest at 99.24 in New Zealand and then retreated to 98.93 in European morning as Nikkei index futures pared early Asian gains. However, renewed buying interest there lifted price higher and climbed to a session high at 99.30 in New York morning on active cross-selling yen versus euro before moving sideways after European market closed.
The British pound traded narrowly in Asian trading and met selling interest at 1.6022 in European morning due to active cross-selling sterling versus euro. Cable fell to a session low at 1.5964 after European markets closed before recovering.
In other news, EU’s Olli Rehn urged Germany to remove bottlenecks to domestic demand and said ‘increase in German domestic demand has been “modest”.’ EU spokesman Simon O’Connor said ‘Portugal program on track; Portugal program set to conclude in spring of next year; doesn’t have “specific” Portugal interest rate in mind.’
On the data front, Italy’s Industrial production in September came in at 0.2% m/m and -3.0% y/y, versus the expectation of 0.3% and -3.6% respectively.
[B]Data to be released on Tuesday: [/B]
Australia NAB business condition, NAB business confidence, Japan tertiary industry index, consumer confidence, machine tools orders, U.K. RICS house prices, CPI, RPI, PPI, ONS house price, Germany CPI, HICP,WPI, Italy CPI, HICP, U.S. Chicago Fed index and Redbook retail sales.