11 Apr 2014
Dollar recovers after overnight risk aversion, new lows for Nikkei
FXStreet (London) - USD rebounded in the early part of the European session after coming under pressure overnight.
EUR/USD has recovered to within 0.04 percent of its open at USD1.3892 after climbing to an earlier high of USD1.3906 before the final reading of German March consumer price index numbers.
Final German CPI in line with expectations
German CPI released by Destatis, Germany’s federal statistical office, came in as expected, up 0.3 percent month-on-month. HICP in March rose 0.9 percent year-on-year, also in line with initial readings.
Michigan consumer sentiment
We have another quiet day on the economic calendar today, with the Michigan consumer sentiment index perhaps the biggest release of note. Expectations are for a slight gain to 81 in April from 80 last month.
Japanese stocks hammered
Japan had a torrid time overnight, with the Nikkei falling to a six-month low after the worst week since March 2011. The benchmark equity index fell by a further 2.1 percent overnight, bringing weekly declines to 7.33 percent. The last time that Japanese markets has such a bad week was in the aftermath of the Fukushima disaster.
With the equity market losses following the biggest declines for the Nasdaq in two years, JPY found bids overnight, climbing to a three-week high against USD at JPY101.3300 before a resurgent dollar pushed the USDJPY pair up to current levels around JPY101.5200.
EUR/USD has recovered to within 0.04 percent of its open at USD1.3892 after climbing to an earlier high of USD1.3906 before the final reading of German March consumer price index numbers.
Final German CPI in line with expectations
German CPI released by Destatis, Germany’s federal statistical office, came in as expected, up 0.3 percent month-on-month. HICP in March rose 0.9 percent year-on-year, also in line with initial readings.
Michigan consumer sentiment
We have another quiet day on the economic calendar today, with the Michigan consumer sentiment index perhaps the biggest release of note. Expectations are for a slight gain to 81 in April from 80 last month.
Japanese stocks hammered
Japan had a torrid time overnight, with the Nikkei falling to a six-month low after the worst week since March 2011. The benchmark equity index fell by a further 2.1 percent overnight, bringing weekly declines to 7.33 percent. The last time that Japanese markets has such a bad week was in the aftermath of the Fukushima disaster.
With the equity market losses following the biggest declines for the Nasdaq in two years, JPY found bids overnight, climbing to a three-week high against USD at JPY101.3300 before a resurgent dollar pushed the USDJPY pair up to current levels around JPY101.5200.