MARKET OVERVIEW AT CLOSE
Euro pairs immediately contracted, and since only the EUR/USD and EUR/AUD have been able to claw back gains, pushing higher.
The European Central Bank (ECB) has come under increasing pressure regarding monetary policy easing in order to spur growth, but until now, Brussels had resisted. However, in seeing its counterparts such as; Bank of Japan, the Federal Reserve and the Bank of England pursue such measures; it would seem that the ECB will now embark on similar policies.
EURCAD 1.3233 -0.41%, EURJPY 127.57 -0.36%, EURNZD 1.5300 +0.11%, EURAUD 1.2661 -0.06%, EURUSD 1.3025 +0.02%, EURGBP 0.8410 -0.01% and EURCHF 1.2261 +0.01%.
Europe’s main equity indexes have all given up significant losses on Friday. European STOXX index has headed markedly lower, currently down -0.45% trading at 295.54. The CAC40 index is also down -0.91% at 3805.38 and the UK’s FTSE 100 down -0.5% at 6410.44.
Ahead of the New York open on Friday saw the release of US Gross Domestic Product (GDP) quarter-on-quarter, which posted 2.5%, disappointing market expectations of 3.0% pushing higher from its previous level of 0.4%.
Immediately following the release, US dollar pairs pushed to the downside.
Gross Domestic Product (GDP) measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy. It is the broadest measure of economic activity and the primary indicator of the economy's health.
USDJPY 97.92 -0.40%, USDCAD 1.0164 -0.38%, NZDUSD 0.8508 -0.13%, GBPUSD 1.5477 -0.03%, AUDUSD 1.0281 +0.02% and EURUSD 1.3021 -0.01%.
Similarly to the situation in Europe, both the US dollar and its major equities have pushed lower on Friday. The S&P 500 is currently trading at 1571.95, down -0.29% and the DIJA is also down, albeit only marginally at 0.1% trading at 14698.34.
The US dollar index (DXY) is also trending lower, currently trading at 82.481, down -0.31%.
The US ten-year is also at a discount at 99*29 (-0.25%).
It would appear that the main beneficiary of both the euro and the US dollar sell-off has been the Japanese yen, as it pushes higher against the majority of its major counterparts.
The yen is clearly still held in high regard by investors during times of uncertainty, such as the risk-on sentiment in the market’s today.
NZDJPY 83.30 -0.54%, CHFJPY 103.95 -0.44%, GBPJPY 151.55 -0.43%, EURJPY 127.50 -0.42%, USDJPY 97.92 -0.40%, AUDJPY 100.66 -0.39% and CADJPY 96.32 -0.02%.
The Japanese main equity index, the Nikkei 225 is currently trading at 13,384.13, down -0.3% for the day.
At market close:
Story provided by StockMarketWire.com