Dollar regains traction on euro's weakness to 22-month low
|Market Review - 24/04/2019 23:47GMT
Dollar regains traction on euro's weakness to 22-month low
The greenback erased intra-day losses made in Asia and European morning and climbed across the board in New York on Wednesday due to weakness in euro and sterling. The single currency fell to a 22-month low on downbeat German Ifo data and sterling tumbled on continued Brexit concern. Elsewhere, the Canadian dollar dropped to a 3-1/2 month low after Bank of Canada dovish tilt.
Versus the Japanese yen, although dollar initially gained to 111.98 in Asian morning, price met renewed selling and fell to 111.75 at European open and then ratcheted lower to 111.68 in New York morning on falling U.S. Treasury yields and cross-buying ion yen before rallying to a 4-month peak of 112.39.
The single currency met renewed selling at 1.1231 in Australia and fell to 1.1195 in European morning on downbeat German Ifo data. Despite recovering to 1.1223, price dropped again to 1.1181 in New York morning and later tumbled to a 22-month low at 1.1141 on broad-baseed selling in euro and renewed usd's strength.
Reuters reported German business morale deteriorated in April, a survey showed on Wednesday, bucking expectations for a small rise and suggesting Europe's largest economy is losing momentum as trade tensions hamper its exporters.
The Munich-based Ifo economic institute said its business climate index fell to 99.2 from an upwardly revised 99.7 in the previous month. The April reading compared with a consensus forecast for 99.9.
"The German economy continues to lose steam," Ifo President Clemens Fuest said in a statement.
The British pound went through a roller-coaster ride. Although cable remained under pressure in Asia and dropped to a fresh 2-month low at 1.2915 in European morning on continued Brexit concern, price erased its losses and rose to at 1.2963 in New York morning on short covering and cross-buying in sterling, especially versus euro before tumbling in tandem with euro to 1.2890.
In other news, Reuters reported British government talks with the opposition Labour Party on finding a Brexit compromise cannot be open ended, Prime Minister Theresa May's spokesman said on Wednesday.
The spokesman said working groups from both sides were pressing on with the talks this week, including a meeting to discuss financial services on Wednesday.
Data to be released on Thursday :
Australia market holiday, New Zealand market holiday, Japan Bank of Japan interest rate decision, UK CBI trends survey, U.S. durable goods, durables ex-transport, durables ex-defense, initial jobless claims, KC Fed manufacturing index, and Canada average weekly earnings.
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