| Market Review - 16/07/2010 21:39 GMT | | | | later closed the day at 1.2928. |
| Dollar falls to 7-month low against yen on | | | | |
| worse-than-expected consumer sentiment | | | | In other euro-related news, European Union |
| The greenback remained under pressure against the | | | | government has agreed details of the planned stress |
| Japanese yen in Asia following previous day's decline | | | | test on banks, with core tier 1 capital a criterion for |
| and fell to 86.97 due to the weakness in Asian | | | | success or failure and exposure to sovereign risk will |
| stocks (Nikkei-225 fell by 2.86%). Although the pair | | | | be the second indicators in the order of importance. |
| briefly recovered to 87.37 in European morning, the | | | | Eurogroup President Jean-Claude Juncker said in the |
| greenback later tumbled to a 7-month low of 86.27 | | | | interview that he does not expect any big |
| after the release of University of Michigan consumer | | | | catastrophes from stress tests and realized euro is |
| sentiment which dropped to the lowest level since | | | | not in danger. He added no country wants to leave |
| August 2009 at 66.5, this was worse than market | | | | euro zone. Earlier in Tokyo, French PM Francois Fillon |
| forecast of 74.0. The figure suggested the U.S. | | | | said that Europe's debt crisis is more to do with badly |
| economic recovery is stalling and the pair closed | | | | managed public finances than fundamental weakness |
| down on weekly basis at 86.55, suggesting further | | | | in the single currency system. He added that Greece |
| losses would be seen next week. | | | | has endangered the credibility of its budgets but |
| | | | | public finances in the EU are no worse than the |
| Versus other major and commodity currencies, dollar | | | | situation in the U.S. and Japan. |
| staged a strong rebound in U.S. session as the | | | | In addition, Chinese Premier Wen who was speaking |
| broad-based selloff in U.S. equities rekindled risk | | | | at a conference with visiting German Chancellor |
| aversion activities, investors dumped risky assets and | | | | Angela Merkel in Beijing said 'euro has been n will be |
| moved to U.S. dollar as safe-haven currency. Dow | | | | in the future an important investment choice for |
| Jones Industrial index tumbled by 261 points, or | | | | China.' |
| 2.52% to 10,098 while S&P and Nasdaq tanked | | | | |
| by 2.88% and 3.11% respectively as earning from U.S. | | | | The British pound traded sideways in Asian session |
| giant corporations GE, Bank of America Corp. and | | | | after surging to a high of 1.5473 in the previous |
| Citigroup disappointed investors. The European stocks | | | | session, selling pressure at 1.5448 knocked sterling |
| also weakened sharply as FTSE-100, CAC-40 and | | | | lower n the pound later tumbled to as low as low as |
| DAX fell by 1.01%, 2.28% and 1.77% respectively. | | | | 1.5279 in New York mid-day on active cross selling in |
| | | | | sterling, eur/gbp rose from 0.8365 to 0.8462 and gbp |
| Although the single currency traded with a soft | | | | jpy fell from 135.07 to 132.04. |
| undertone in Asia on cross selling in euro versus yen | | | | |
| after previous session's rally to 1.2955, price briefly hit | | | | On the economic front, the eurozone turned to a |
| an intra-day low of 1.2890 in European morning, | | | | trade deficit in May as EU trade balanced came out |
| buying interest there lifted the pair after IMF's chief | | | | at -3.47B euros, worse than the estimate of -0.5B |
| Strauss-Kahn said that stress test will show all major | | | | euros. U.S. consumer price index in June dropped for |
| European banks are sufficiently solid and his comment | | | | a third straight month as U.S. CPI in June fell by 0.1%, |
| eased concerns about fiscal problems in the | | | | versus the expectations of 0.0% and -0.2% in May. |
| eurozone. The single currency then rose to a fresh | | | | CPI core in June rose by 0.2%, the second monthly |
| 2-month high of 1.3008 at New York opening. | | | | gain and better than the forecast of 0.1%. U.S. Net |
| However, euro retreated sharply to 1.2915 on | | | | long-term capital inflows fell to $35.4 billion in May, |
| profit-taking due to the weakness in U.S. equities and | | | | worse than the estimations of $40. |