The euro hit a two-month high against the dollar on Thursday amid a broad increase in risk appetite after strong Australian data and a larger-than-expected drop in U.S. weekly initial jobless claims.
World stocks rose on Thursday while the euro hit a two-month peak against the low-yielding dollar on rising expectations the forthcoming earnings season would show strong corporate performance.
European shares gained ground on Thursday with investors scooping up battered banking stock as details of the sector's stress tests started to emerge, adding to a tentative recovery from a sharp two-week sell-off.
Interbank euro funding costs rose on Thursday and could shift if European Central Bank chief Jean-Claude Trichet surprises with plans for more liquidity provision or news on bank stress tests.
Trichet was due to begin a news conference at 1230 GMT after the bank held interest rates at 1 percent, as expected.
In an effort to reassure financial markets about the health of the European Union's banking system, the bloc's countries will stress-test a large number of their banks and publish the results.
The International Monetary Fund upgraded its 2010 global growth forecast on Thursday, citing robust expansion in Asia and renewed U.S. private demand, but warned the euro area's debt crisis posed a big risk to recovery.
China bought a net $8.4 billion of Japanese bonds, mostly short-term notes, in May, when the euro slid on heightened concerns over the euro zone's debt crisis, Japanese Finance Ministry data showed on Thursday.
European shares rose on Thursday morning, with the banking sector higher ahead of the European Central Bank's interest rate decision and its news conference likely to focus on bank stress tests.
Banking stocks featured among the top performers on expectations the tests will not be as stringent as feared. Lloyds Banking Group (LLOY.L), BNP Paribas (BNPP.PA) and Barclays (BARC.L) rose 2.4-3.3 percent.
The euro hit a two-month high against the dollar on Thursday after strong Australian jobs data boosted higher-risk currencies, while investors awaited comments from the European Central Bank on bank stress tests.
China bought a record $7.9 billion in short-term Japanese debt in May, a surge widely viewed as temporary while sovereign debt concerns buffet the euro, rather than a shift in China's long-term investment stance.
The euro surged to a two-month high and Asian stocks were set for their best gains in over two weeks on Thursday after a bullish company forecast fuelled optimism about the coming U.S. earnings season and underpinned a slow return by investors to riskier assets.
The euro pushed to a two-month high against the dollar on Thursday as short-covering kicked in after strong Australian jobs data sent the Aussie dollar up and helped gains in other currencies against the greenback and yen.
The Australian dollar has received another boost overnight after an improvement in investor risk appetite.
Traders were content to play the ranges between 0.8470 and 0.8510 during yesterday's domestic session in light of the sharp rally above US85 cents the previous day.
The euro fell from seven-week highs against the dollar on Wednesday on concerns about the growth outlook for the global economy and plans to test the financial health of European banks.
CME Group Inc (CME.O), which runs the world's biggest clearinghouse for futures contracts, plans to start clearing over-the-counter interest-rate contracts in 2010, an executive said on Wednesday.
A sweeping financial regulatory reform bill that won passage this month in the U.S. House of Representatives will require trading and clearing of a swath of derivatives currently traded away from regulated exchanges. CME is among several clearinghouses that aim to take advantage of the new requirement...
The euro fell from seven-week highs against the dollar on Wednesday on concerns about the growth outlook for the global economy and as investors scrutinized details of plans to test the financial health of European banks.
The euro slipped off seven-week highs against the dollar on Wednesday on concerns about the global economic recovery and as investors scrutinized details of plans to test the financial health of European banks.
Signs Switzerland may still face deflation risks mean its central bank could yet resume efforts to curb the Swiss franc's strength, but it is unlikely to step in unless the euro falls below 1.30 francs.
Swiss consumer price data on Tuesday showed only a limited pick-up in inflation in June. The Swiss National Bank last month cited subsiding deflation risks as a reason for ending its 15-month campaign to fight excessive franc rises.
Investment flows to the world's four biggest emerging economies -- Brazil, Russia, India and China -- slowed slightly in the first half of 2010, but growth rates and the pace of dealmaking remain strong, data shows.
The euro slipped on Wednesday but was holding not far from a seven-week high, with traders saying it could rise further in the near term due to doubts about a recovery in the U.S. economy and positive technical signals.
Asian stocks fell on Wednesday as investors worried global growth was faltering, while the euro held near a 7-week high as investors pared long positions in the dollar on doubts about the resiliency of the U.S. recovery.
The euro dipped on Wednesday but was still hovering near a recent seven-week high, with traders saying it could rise further in the near term due to doubts about a recovery in the U.S. economy and positive technical signals.
The U.S. Treasury Department is expected to again decline to name China a currency manipulator in a long-delayed report that will likely anger congressional critics of Beijing's policies.
The report was due April 15 but was delayed until after last month's G20 leaders' summit in Canada. China said just before the G20 met that it will make the yuan's exchange rate more flexible gradually and end a two-year peg to the dollar.
The Australian Dollar has opened higher this morning above 0.8500 and this is pretty much on the back of yesterday's no change in Australia's Official Cash rate and the release of the Australian Trade Balance data for May.
As expected, the Reserve Bank of Australia (RBA) left interest rates on hold at 4.5 per cent. In the accompanying statement, RBA governor Mr Glenn Stevens noted that whilst underlying inflation is likely to be in the upper half of the target zone over the next year, current policy settings were described as appropriate.
The Australian dollar rallied on Tuesday after an upbeat assessment of the global economy by the Reserve Bank of Australia spurred traders' appetite for high-yielding currencies, and the rising risk demand also helped boost the euro.
Higher risk appetite, combined with a lackluster U.S. service sector report, put the dollar under broad selling pressure amid fears of further slowdown in the U.S. economy.
A 72 billion euro liquidity drain from the European monetary system fuelled expectations of higher interbank borrowing costs to come as bank-to-bank rates scaled 10-month highs on Tuesday.
The London Interbank Offered Rate (Libor) in three-month euro funds EUR3MFSR= hit 0.74 percent at the London fixing, its highest level since Sept 9. Euro Libor has been creeping up since hitting a euro lifetime low of 0.57563 percent on April 1.
The dollar fell against the yen on Tuesday after a lower-than-expected reading on growth in the U.S. non-manufacturing sector raised concerns about the outlook for the economy.
The Australian dollar rallied on Tuesday after an upbeat assessment of the global economy by the Reserve Bank of Australia spurred appetite for high-yielding currencies, while rising risk demand also helped boost the euro.
