The dollar continued losing ground on Friday after safe-haven flows dried up following reports that Greece’s latest list of reforms had been well received by the Euro-group – a committee of euro-zone finance ministers – giving hope to the possibility a bailout deal could be struck this weekend.
The dollar was further depressed after haven-buying by investors fearing a stock-market meltdown in China also diminished, after measures introduced by the authorities, which included a banning of short-selling, incentives for funds to buy blue-chip stocks and Beijing itself buying shares in small caps, seemed to help prevent more waves of selling. The Shanghai Composite rallied over 4.0% on Friday, following a strong day on Thursday, however, it is only the second day in a row the index has managed to buck the down-trend.
On the data front it was a light Friday, with the main attraction commentary from Janet Yellen who is speaking as I write. She highlighted the potential impact of global shocks from Greece or China on timing for Fed hike; and reiterated much which has already been said from the Fed: that there is moderate growth, the U.S economy is fundamentally quite sound but there is room for improvement in the labour sector.
Data showing a rise in Wholesale Inventories of 0.8% in May from 0.4% previously could also have weighed faintly as increasing inventories can be indicative of a slow-down – particularly as it was above the 0.3% expected.
The dollar continued losing ground on Friday after safe-haven flows dried up following reports that Greece’s latest list of reforms had been well received by the Euro-group – a committee of euro-zone finance ministers – giving hope to the possibility a bailout deal could be struck this weekend.
The dollar was further depressed after haven-buying by investors fearing a stock-market meltdown in China also diminished, after measures introduced by the authorities, which included a banning of short-selling, incentives for funds to buy blue-chip stocks and Beijing itself buying shares in small caps, seemed to help prevent more waves of selling. The Shanghai Composite rallied over 4.0% on Friday, following a strong day on Thursday, however, it is only the second day in a row the index has managed to buck the down-trend.
On the data front it was a light Friday, with the main attraction commentary from Janet Yellen who is speaking as I write. She highlighted the potential impact of global shocks from Greece or China on timing for Fed hike; and reiterated much which has already been said from the Fed: that there is moderate growth, the U.S economy is fundamentally quite sound but there is room for improvement in the labour sector.
Data showing a rise in Wholesale Inventories of 0.8% in May from 0.4% previously could also have weighed faintly as increasing inventories can be indicative of a slow-down – particularly as it was above the 0.3% expected.