Tuesday 6 September 2011

Daily FX Market Outlook by AceTrader-2-9-2011



The single currency edged lower from Asian high at 1.4381 and then tanked to 1.4263 in European morning on cross selling of euro vs other currencies (eur/jpy, eur/gbp and eur/chf tumbled from 111.00 to 109.53, from 0.8856 to 0.8797 and from 1.1603 to 1.1321 respectively). Although euro rebounded to 1.4315 after the release of better-than-expected U.S. ISM manufacturing data (50.6 vs street forecast of 48.5), the pair eventually dropped to session low at 1.4227 before staging a recovery to 1.4298 at NY midday. 
 
Earlier in Europe, euro was pressured as German and EU Manufacturing PMI for August were reported worse than expected at 50.9 and 49.0 versus forecasts of 52.0 and 49.7 respectively. 
 
Against the Japanese yen, the greenback rallied initially to 77.25 in Asian morning before retreating to 76.76. Although the pair rebounded to 77.18 after the release of U.S. ISM manufacturing data, selling interest below indicated Asian high at 77.25 sent price back to 76.73 at NY midday before a recovery to 76.93 was seen ahead of NY closing. 
 
The British pound traded sideways in Asia and then fell in tandem with euro from 1.6253 to 1.6195 in European session. Later, cable tanked to as low as 1.6132 in NY morning as the U.S. ISM manufacturing data strongly beat expectations before stabilising in NY afternoon. 
 
Earlier at European open, cable was under pressure after the release of weaker-than-expected U.K. house prices data as U.K. Nationwide House prices for Aug. came in at -0.6% m/m and -0.4% y/y vs forecasts of 0% and 0.4% respectively.  
 
On the data front, U.S. initial jobless claims were 409K vs 410K forecast, prior figure was revised up from 417K to 421K whilst Constructing spending for July was -1.3% vs forecast of 0.2% and June's figure was revised up from 0.2% to 1.6%. German GDP for Q2 reported as forecasted at 0.1% q/q and 2.8% y/y. 
 
Data to be released on Friday include: 
 
Japan business capex, U.K. PMI construction, EU PPI, U.S. non-farm payrolls, private payrolls, unemployment rate, avg. hourly earnings

0 comments:

Post a Comment

 
Design by Free WordPress Themes | Bloggerized by Lasantha - Premium Blogger Themes | WordPress Themes Review