The dollar gets stronger on Thursday due to the financial problems at the China Evergrande Group, where the Chinese government does not intervene to save the big real estate company. It creates a more risk-off mood in the market and therefore a somewhat stronger dollar. The euro/dollar was down 0.3 percent on Thursday at 1,1777.
Real estate stocks in Hong Kong fell by 5 percent on messages. Beijing is putting pressure on real estate developers to cool down China’s overheated real estate market and this could lead to more financial problems in the sector.
The market continues to look ahead to the next policy meeting of the Federal Reserve. The question is whether policy makers will make a big announcement about tapering. Now that the US jobs report was weak and inflation has not increased any further, the odds are not so great.
Before the Fed takes office next week, we’re looking at US retail sales this afternoon. They could signal inflation. The market also traditionally pays attention to weekly aid applications. Furthermore, rising oil prices have an impact on the foreign exchange market, with higher rates for the Russian ruble and the Norwegian krone against the euro.