Dollar rises broadly on recent upbeat U.S. data: July 21, 2016

Market Review - 20/07/2016 22:20GMT

Dollar rises broadly on recent upbeat U.S. data

The greenback gained against majority of its peers except the British pound on Wednesday as recent upbeat data and increased speculation that major central banks would ease their policies further supported the buck.

Versus the Japanese yen, although the greenback dropped from Australian high at 106.26 to 105.84 in Asian morning, price pared its losses and rallied to 106.72 in European morning. Dollar found renewed buying at 106.44 ahead of New York open and rose to an intra-day high at 107.02 near New York close.

Although the single currency edged up to 1.1021 ahead of European open, price dropped sharply to session low at 1.0981 in early European morning on cross-selling vs sterling. Later, euro pared its losses and rebounded to 1.1022 in Europe, then to an intra-day high at 1.1030 in New York morning before easing.

The British pound found renewed buying at 1.3065 in Asia and rallied to 1.3198 in European morning on upbeat UK jobs data. Cable briefly retreated to 1.3133 in New York morning, however, the pair found support there and rebounded to an intra-day high at 1.3228 near New York close.

The unemployment rate fell to 4.9% in the three months to May, the lowest level since the three months to October 2005 and down from 5.0% in April, the Office for National Statistics said.

In other news, UK's PM May said 'Britain will relinquish European Council Presidency next year following Brexit vote; Britain wud need to carefully prepare for Brexit negotiations b4 triggering article 50.'

Data to be released on Thursday:

Swiss trade balance, exports, imports, France business climate, U.K. public sector net borrowing, retail sales, Eurozone ECB interest rate decision, deposit rate decision, U.S. initial jobless claims, national activity index, Philadelphia Fed Manufacturing Survey, monthly house price, existing home sales, CB leading indicator and Canada wholesale trade.