Dollar falls broadly on Trump's "protectionist" stance: Jan 24, 2017
|Market Review - 23/01/2017 22:24GMT
Dollar falls broadly on Trump's "protectionist" stance
The greenback ended the day lower against majority of its peers on Monday as the lack of clarity over President Trump's economic policies continued to weigh on the buck. However, traders sold the greenback broadly on Trump's protectionist stance.
Versus the Japanese yen, dollar opened lower in New Zealand and then tumbled to 113.17 ahead of European open. Despite a brief recovery to 114.07 in New York morning on comments from Trump, the greenback dropped once more and hit session low at 112.70 in New York session.
U.S. President Trump said 'going to cut regulations, which have gotten out of control; he is very big on the environment but regulations can get in way; promises advantages for companies that make products in U.S.; will expedite factories, companies will get very fast approval to build in U.S.; companies that move abroad will face major border tax on products coming into U.S.; China, Japan mkt difficult to sell U.S. products there.'
The single currency traded with a firm bias on dollar's weakness and gained to session high at 1.0755 ahead of European open before retreating on Trump's comments. However, euro found renewed buying at 1.0706 in New York morning and rebounded to 1.0752. Price later rose to session highs of 1.0769 on renewed usd weakness.
The British pound also traded with a firm bias and gained to 1.2445 in Asia, then to 1.2472 at European open on dollar's broad-based weakness. Despite a brief retreat to 1.2424 in Europe, cable rose to a fresh 1-month high at 1.2494 in New York morning, later, cable rallied to 1.2546 at New York close.
Data to be released on Tuesday:
Japan manufacturing PMI, France manufacturing PMI, services PMI, German manufacturing PMI, services PMI, EU manufacturing PMI, services PMI, UK PSNB, PSNCR, U.S. redbook, manufacturing PMI and existing home sales. U.K. Supreme Court to deliver Brexit ruling around 09:30GMT.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.