The dollar rallied sharply across the board, popping to a 5-month high against the euro to 1.4089 and climbing just shy of the 1.05-level versus the Canadian dollar. A combination of heightened risk aversion and skepticism over the viability of the global economic recovery dragged US equities sharply lower, also pulling down oil and gold prices on the session. By afternoon trading, the Dow Jones and Nasdaq were both down by over 1.8% while the S&P 500 tumbled by 1.6%. The economic reports released from the US earlier today included December PPI, building permits and housing starts. The headline producer price index increased by 0.2% on a monthly basis from 1.8% in November and on an annual basis higher by 4.4% from 2.4%. The core PPI reading was flat in December compared with a 0.5% increase in November and up by 0.9% versus 1.2% a year earlier. Meanwhile, housing reports were mixed with building permits up sharply to 10.9% in December from 6.9% while housing starts declined by 4.0% compared with an 8.9% increase previously.
In the session ahead, the data slated for release will see weekly jobless claims, December leading indicators and the January Philadelphia Fed manufacturing survey. Weekly jobless claims are seen little changed, down marginally to 440k from 444k in the previous week. The January Philadelphia Fed manufacturing survey is estimated to slide to 18.0 compared with a 22.5 reading in the previous month and December leading indicators are seen slipping to 0.7% from 0.9%.
by Korman Tam
ForexNews.com
No comments:
Post a Comment