[B]Market Review[/B] - 05/11/2013 [I]22:13GMT [/I]
[B]Euro falls ahead of ECB meeting[/B]
The single currency met selling interest at 1.3522 in Asian trading and then dropped to 1.3478 in European morning before rebounding to 1.3511 partly due to EU commission’s forecast on euro zone GDP growth. However, euro weakened again on growing speculation that the European Central Bank may signal easier monetary policy or even cut interest rates at its policy meeting on Thursday.
Euro fell to an intra-day low of 1.3449 in New York morning on strong U.S. October’s ISM non-manufacturing index, which came in at 55.4, stronger than the economists’ forecast of 54.0.
EU commission forecasted euro zone GDP growth at -0.4% for 2013, +1.1% for 2014, +1.7% in 2015 and EU GDP growth at 0.0% for 2013, +1.4% for 2014, +1.9% in 2015.
Versus Japanese yen, the greenback met selling interest at 98.68 and fell to 98.24 in Asian trading on Tuesday. Dollar fell to an intra-day low at 98.16 in European morning and then rebounded to 98.64 in New York session.
The British pound traded narrowly in Asian trading and retreated to 1.5949 in European morning, however, buying interest quickly emerged in Europe after the release of stronger-than-expected U.K. service PMI, which came in at 62.5 for October, better the forecast of 59.8. It was also the sharpest rise in activity since May 1997. Later, cable jumped to a session high at 1.6063 in New York morning b4 retreating.
In other news, Federal Reserve Bank of Boston President Eric Rosengren says ‘expects Fed funds rate quite low for quite some time; expects better economic data, U.S. GDP growth closer to 3% early next year.’
ECB’s President Mario Draghi says ‘we are gradually recovering from the financial crisis; overall economic situation has slightly improved.’
[B]Data to be released on Wednesday: [/B]
New Zealand unemployment rate, employment change, Australia trade balance, U.K. BRC shop price index, industrial production, manufacturing production, Italy service PMI, France service PMI, Germany service PMI, factory orders, EU service PMI, retail sales, Canada building permits, Ivey PMI and U.S. leading indicators.