[B]Market Review - 15/03/2013 [I]20:55GMT[/I][/B]
[B]Dollar falls broadly on weak U.S. data[/B]
The greenback remained under pressure vs other major currencies on Friday following previous day’s broad-based decline on profit taking. Release of more disappointing U.S. data cooled down market optimism on the economic recovery in U.S.
The single currency edged higher to 1.3042 in early European trading and then rose strongly to session high of 1.3107 in U.S. morning on dollar’s broad-based weakness due to weak U.S. economic data, however, the selloff in eur/jpy pressured the pair to 1.3046 and the pair traded narrowly in U.S. afternoon session.
Earlier in European morning, the single currency was supported by the release of eurozone CPI, which were 0.4% m/m and 1.8% q/q, same as the expectations.
Versus the Japanese yen, although the greenback traded narrowly inside the range of 95.88-96.28 in Asia and Europe, the pair fell sharply in New York morning after the release of weak U.S. Empire state manufacturing condition, which came in at 9.24, worse than the street forecast of 10.00. Dollar’s intra-day selloff accelerated as another report showed a weak U.S. consumer confidence sentiment (University of Michigan consumer confidence came in at 71.8 for February versus the expectation of 71.0), price later penetrated Wednesday’s low of 95.44 to 95.08 at U.S. midday before staging a recovery to 95.58 on short-covering.
The British pound traded narrowly in Asian morning and started to climb ahead of European open. Sterling then climbed to a high of 1.5177 shortly after New York open due to broad-based weakness in the greenback, however, cable ratcheted lower retreated in tandem with euro and partly to cross selling in sterling versus euro and yen to 1.5086 in U.S. afternoon.
In other news, Japan’s parliament approved Kuroda as new central bank governor, Iwata and Nakaso as Bank of Japan deputy governor. EU Economic and Monetary AffairsCommissioner Olli Rehn said ‘EU commission will propose to give Portugal one extra year, to 2015, to bring down deficit below 3%.’ BoE’s governor King said ‘most important is the commitment to the target of 2% inflation target; sees signs of recovery and case for supporting that through additional asset purchases; does not think Fed-style dual mandate would have make sense for BoE; will monitor inflation expectations very closely.’
On the data front, U.S. CPI in February came in at 0.7% m/m and 2.0% y/y, slightly higher than the forecasts of 0.5% and 1.9%. U.S. industrial n manufacturing production in Feb came in at 0.7% n 0.8%, better than the forecasts of both 0.4%.
[B]Data to be released next week : [/B]
New Zealand Westpac consumer confidence, U.K. Rightmove house prices, Italy Trade balance, EU Trade balance, U.S. NAHB housing mrkt index on Monday.
Japan Leading indicators, U.K. CPI, RPI, RPI - X, PPI input , PPI output, PPI core, ONS house price, Germany ZEW economic sentiment, ZEW current , U.S. Housing starts, Building permits, Redbook retail sales, Canada Wholesale sales on Tuesday.
New Zealand Current , Australia Westpac leading economic index, EU Current account (euro), U.K. minutes of Mar 7 MPC vote, Claimant count, ILO unemployment rate, Avg. earnings, Chancellor of Exchequer George Osborne will unveil 2013 U.K. budget, Swiss ZEW index, EU Consumer confidence, U.S. Fed rate decision on Wednesday.
New Zealand GDP, Japan Trade balance, Export, Import, All industry index, China HSBC Services PMI, Swiss Trade balance, France Manufacturing PMI, services PMI, Germany Manufacturing PMI, Services PMI, EU Manufacturing PMI, Services PMI, U.K. Retail sales, PSNCR, Public sector net borrowing, CBI industrial trend, U.S. Jobless claims, Markit PMI preliminary, House price index, Philadelphia Fed survey, Existing home sales, Leading indicators, Canada Retail sales on Thursday.
Australia Conference Board Leading Index, France business climate, Germany Ifo business climate, Ifo current assessment on Friday.