Market Review – 19/04/2010 23:04GMT
Dollar pares gains as U.S. stock rebounds
The greenback pared gains versus most of its counterparts (except the Japanese yen) due to returned risk appetite as U.S. shares rebounded. Earlier, the dollar extended its Friday’s gain as news of weekend’s report of German and U.K. government were leading a probe into Goldman’s alleged fraud case filed by U.S. SEC led to more risk aversion and spurred demand of safe-haven currency. Versus the Japanese yen, the greenback declined to 91.60 in European morning before rising to as high as 92.47 in NY afternoon. DJI rose 73 points and closed at 11092.
Euro was initially pressured in Asia and European morning on renewed concern over Greece’s debt problem as well as weakness in European and Asian equities following news of alleged fraud case filed by SEC on Goldman. Price hit an intra-day low of 1.3416 at NY opening but later staged a strong rebound in tandem with cable in NY afternoon.
The British pound also traded with a soft bias on Monday as the latest U.K. election poll results on Sunday showed a surprise jump in support for the smaller Liberal Democrats Party due to last Thursday’s strong performance of Nick Clegg in the 1st televised debate at the expense of the Labour and Tories, suggesting a hung parliament in May 6 general election would be likely. Cable tumbled from 1.5359 to 1.5192 in European mid-day before rebounding strongly after U.K. Finance Minister Alistair Darling said exports have picked up and unemployment stabilized.
Economic data to be released on Tuesday include: New Zealand CPI, Germany PPI, EU Current account, U.K. CPI, Germany ZEW index, Canada BOC rate decision.