четверг, 20 июня 2013 г.

ASIA session review: Dollar gains further

Data released (actual, consensus, previous):          
         
01:45    CN    CNY    HSBC Manufacturing PMI (Jun)Preliminar    48.3    49.4    49.2        
04:30    CH    CHF    SNB Financial Stability Report     
05:00    JP    JPY    Leading Economic Index (Apr)    99.0        97.7    
05:00    JP    JPY    Coincident Index (Apr)    95.3        94.6    
06:00    DE    EUR    Producer Price Index (MoM) (May)    -0.3%    -0.1%    -0.2%        
06:00    DE    EUR    Producer Price Index (YoY) (May)    0.2%    0.3%    0.1%        
06:00    CH    CHF    Trade Balance (May)    2,224M    2,410M    1,698M
07:28    DE    EUR    Markit Manufacturing PMI (Jun)Preliminar    48.7    49.8    49.4        
07:28    DE    EUR    Markit Services PMI (Jun)Preliminar    51.3    50.0    49.7        
07:30    CH    CHF    SNB Interest Rate Decision (Jun 20)    0%    0%    0%        
07:58    EMU    EUR    Markit Manufacturing PMI (Jun)Preliminar    48.7    48.6    48.3        
07:58    EMU    EUR    Markit PMI Composite (Jun)Preliminar    48.9    48.1    47.7
08:30    UK    GBP    Retail Sales (YoY) (May)    1.9%    0.2%    0.8%
08:30    UK    GBP    Retail Sales (MoM) (May)    2.1%    0.8%    -1.1%
08:30    UK    GBP    Retail Sales ex-Fuel (MoM) (May)    2.1%    0.9%    -1.2%    
08:30    UK    GBP    Retail Sales ex-Fuel (YoY) (May)    2.1%    0.5%    0.6%


The dollar strengthened versus most of its major peers after Federal Reserve Chairman Ben S. Bernanke flagged the case for reduced monetary stimulus if U.S. data keeps improving.


Stocks markets declined after Chinese manufacturing contracted and the prospect of reduced stimulus damped demand for higher-yielding assets before U.S. manufacturing and housing reports.

The Dollar Index, which IntercontinentalExchange Inc. uses to monitor the greenback against the currencies of six U.S. trade partners, gained 0.5% to 81.793.

The Federal Open Market Committee yesterday left the monthly pace of bond purchases unchanged at $85 billion, saying that “downside risks to the outlook for the economy and the labor market” have diminished. Policy makers raised their growth forecasts for next year to a range of 3 percent to 3.5 percent and reduced their outlook for unemployment to as low as 6.5 percent.



EURO:
remain under pressure after yesterday’s selloff caused by Bernanke’s speech. Federal Reserve Chairman said the central bank could reduce its bond-buying this year and end it next year if economic improvement continues.
Weak European PMI data added pressure on the common currency.

EUR/USD support is around $1.3230 and $1.3170 (Jun 10 lows). Above $1.3300 and $1.3400 (initial resistance, Jan 14 highs) resistance comes at $1.3480, then - near $1.3540 (channel resistance line from May 29).


POUND:
U.K. retail sales including fuel rose by 2.1% last month after slipping by 1.3% in Aprily.
Sterling has strengthened 3.3% in the past three months, the best performer after the euro among 10 developed-market currencies. Europe’s common currency gained 3.5% and the dollar advanced 0.8%.

GBP/USD bounced back to the session high $1.5490 after unexpectedly strong retail sales data.  Initial resistance comes at recent high on $1.5670, extending to channel line at $1.5730. Next resistances could be found at $1.5765 (Feb 7 high) and $1.5800 (psychological level). Break under session’s lows will widen losses to $1.5380 (June  6 base and 50% of $1.5006-$1.5750).


YEN:
USD/JPY remain above Y98.00. The upside move is targeting Y98.80, for a close above Y99.00 and to reach the psychological Y100.00 the June highs. Minor support placed at Y96.00, ahead of Y95.00


COMMODITY CURRENCIES:

AUSSIE: dropped for a fifth day amid the prospect of reduced Fed stimulus and after HSBC Holdings Plc and Markit Economics said the preliminary reading of their Purchasing Managers’ Index for China’s manufacturing was at 48.3 in June, below the 49.1 estimated by economists in a Bloomberg survey. A reading below 50 indicates contraction.

DATA AHEAD:

At 14:00 GMT US CB Leading Indicator, as well as Existing Home Sales data and  Philadelphia Fed Manufacturing Survey are expected.

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