Dollar remains unchanged on Fed outlook uncertainty: March 21, 2017

Market Review - 20/03/2017  22:19GMT  

Dollar remains unchanged on Fed outlook uncertainty

The greenback remained little changed against its peers on Monday as the less-than-expected hawkish Fed statement last week continues to weigh on the buck. 

Versus the Japanese yen, dollar remained under pressure after last week's selloff and dropped to an intra-day low at 112.46 at European open. However, price pared its losses and staged a short-covering rebound to 112.90 in European morning before retreating again to 112.50 in New York session. 

The single currency traded with a firm bias in Asia and gained to an intra-day high at 1.0777 at European open on dollar's broad-based weakness. However, euro pared its gains and retreated to 1.0743 at New York open, then to 1.0735 in New York afternoon. 

The British pound also traded with a firm bias in Asia and rose in tandem with euro to an intra-day high at 1.2436 at European open. However, cable swiftly pared its gains and tumbled to an intra-day low at 1.2335 in New York on news that UK will trigger Article 50 by March 29th before staging a minor recovery on intra-day short covering. 

UK PM May's spokesman said 'UK PM May will trigger Article 50 of EU treaty on Mar 29 to start Brexit process; UK's permanent EU representative informed Tusk's office on Mon of May's intention to trigger Article 50 on Mar 29; there are no plans for an early general election.' 

On the data front, Destatis said that German Producer Price Inflation rose to a seasonally adjusted annual rate of 0.2%, from 0.7% in the preceding month. Analysts had expected German Producer Price Inflation to rise 0.3% last month. 

Data to be released on Tuesday: 

Australia house price, Swiss trade balance, UK CPI, core CPI, RPI, PPI input, PPI output, PPI core output, PSNB, PSNCR, CBI trends, Canada retail sales, U.S. current account and redbook retail sales.