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Video for April 17th, 2008 (3 min 12 sec): Pound Surges vs Rivals, Euro Eases on PM Comments, Loonie Falls on CPI Data EUR/USD - Euro Eases Off All-Time High as PM Juncker Comments Boost Dollar
The Euro-Dollar pair fell in favor of the dollar after Luxembourg Finance Minister Juncker said that the euro's recent advance against the dollar isn't "desirable" and that the markets may have misunderstood the potential for joint intervention by central banks from the recent G7 meeting. This caused some knee-jerk Dollar buying though the Euro rebounded pretty swiftly after hitting support near 1.5850. EUR/GBP - Euro Eases off All Time High vs Pound as Well
The Euro fell against the Pound as well, easing off its all time high by around 100 pips. The Pound gained on speculation that the Bank of England will try to ease money-market conditions boosted investor sentiments for the higher yielding Pound. GBP/USD - Pound Jumps 200 Pips vs Dollar
Against the Dollar, the Pound was up 200 pips from its low as US data was disappointing today. The pair breached 1.99 around noon time but was trading below that as of 1:45 PM EST. GBP/JPY - Pound Rallies 330 Pips vs Yen as Investor Confidence Brightened
The Pound gained sharply on the Yen, as this pair reflects carry trade sentiments and the speculation helped it rally 330 pips from session lows yesterday evening. The pair has not been at this level since last Monday. SWZ Annual Rate of Retail Sales Up 3.3%; ZEW Expectations Remains Low at -71.4 Turning to some fundamental news, the pace of annual retail sales in Switzerland rose by 3.3%, more than expected. A strong labor market is supporting consumer spending. However food amounted for a big portion of sales in the form of prices increase. A second release, the ZEW expectations index for April, remained mired near March's levels. Expectations had been for a better showing. USD/CHF - ZEW Expectations Weight on Franc
The Dollar-Swiss Franc pair hit its low for the day following the sales data, but rose in the Dollar's favor after the unfavorable ZEW figure. The Dollar rallied 120 pips to hit resistance from yesterday highs, and then proceeded to pare some of its losses at the NY open in response to US jobless claims. US Initial Claims Climb 17K to 372K, Continuing Claims Highest in 4 Years Initial claims for unemployment rose 17K last week to a pace of 372K. The total number of people collecting benefits rose to a 4 year high at 2.984 million. The numbers were slightly larger than expected as industries tied to housing and financial industries weakened, and other firms remained reluctant to hire more, as the US experiences recessionary conditions. US Philly Fed Index Deteriorates to -24.9; Leading Index Positive at 0.1% Manufacturing in the Philly region deteriorated in March. The manufacturing index fell to -24.9 as all of the surveys categories declined compared to March. In a third release, the Conference Board leading index rose 0.1% in March, recovering from February's -0.3% reading. USD/JPY - Dollar Gains Overnight and Withstands US News
The Dollar gained on the Yen overnight climbing near the 102.70 level. At the NY open, the weaker US news helped the Yen pare some of its losses. US stocks were mixed, but mainly stayed in negative territory. The Dollar managed to recover as the NY session entered the afternoon. By 2:30 PM the pair was trading near 102.50, 75 pips higher than the session's open. CAN Core CPI at 0.2% on the Month and 1.3% on the Year, Lower Than Forecast In Canada, consumer inflation came in tamer than expected in March. On the month, prices rose 0.4% matching February. However, core price fell rather sharply from 0.5% to 0.2%. On the year, inflation cooled to 1.4%, matching expectations. The annual core rate went even lower than forecasts falling to 1.3%. The data gives the Bank of Canada, which meets next week, more leeway in cutting rates in order to prop up economic growth. USD/CAD - Loonie Falls After Tame Core CPI Figures
The news set off an increase in volatility in the US Dollar- Canadian Dollar pair. First the pair broke up above 1.0050, then retreated back down below parity, and then shot up 140 pips as the markets digested the data. By 2:20 PM EST the pair was trading about 100 pips higher than its session open. Upcoming Releases Tonight Australia releases data on import prices for the 1st quarter. Japan follows with a report on household confidence. Overnight, Germany will reveal producer prices while the UK unveils money supply figures and government borrowing. Tomorrow, there are no releases from the US. Canada will post wholesale sales data and its leading index for March. |
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