- Asian session: The dollar rose
Market news
16 March 2011
Asian session: The dollar rose
The dollar rose and the yen erased losses against the euro as fires and aftershocks hampered efforts to contain radiation at a crippled Japanese nuclear power plant, boosting demand for safer assets.
The euro fell as officials battling to prevent a nuclear meltdown said fuel rods at two reactors at the power station north of Tokyo may have been damaged. The euro also dropped after Moody’s Investors Service downgraded Portugal.
The Dollar Index, which tracks the greenback against the currencies of six major U.S. trading partners including the euro, yen and pound, gained 0.1 percent to 76.52.
EUR/USD: the pair bargained within the limits of $1,3890-$ 1.4000.
GBP/USD: the pair become stronger above a mark $1,6100.
USD/JPY: the pair bargained within the limits of Y80.70-Y81.20.
EMU data at 1000GMT is expected to see labour cost at 0.7% for Q4 and the final Feb HICP data at 2.4%. At 1200GMT, the Norges Bank delivers its monetary policy decision, which is followed by a press conference at 1245GMT.
UK labour market data is due at 0930GMT. The Q4 headline Labour Force Survey data deteriorated with a 68,000 drop in employment and the first official data for the new year, while January's claimant count figure showed a small rise. The Bank of England, however, believes the picture is less bleak.
US data starts at 1100GMT with the weekly MBA Mortgage Application Index. Meanwhile, US data at 1230GMT includes Housing Starts, Building Permits, the Q4 Current Account and PPI. The pace of housing starts is expected to slow to 560,000 annual rate in February after improving to a 596,000 annual rate in January. Builders continue to hold the line on new home supply. NAHB reported no change in the builders index in February. Producer prices are expected to increase by 0.7% in February after a 0.8% increase in January. Core prices are expected to increase by 0.2% after the surprise 0.5% jump in January. Later US data sees the weekly EIA Crude Oil Stocks data at 1430GMT.
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