Dollar retreats broadly due to second day of gains in U.S. stocks
|Market Review - 13/02/2018 01:02GMT
Dollar retreats broadly due to second day of gains in U.S. stocks
The greenback was broadly weaker against majority of its peers on Monday U.S. stocks had clocked up 2 consecutive of gains after last week's sharp selloff boosted investors' risk appetite. Intra-day retreat in U.S. Treasury yields also added pressure on the dollar. The Dow Jones Industrial Average closed higher by 410.37 points, or 1.7%, to 24,601.27.
Versus the Japanese yen, despite initial gain to 108.95 in New Zealand, dollar remained under pressure and fell to 108.57 at Asian open on profit-taking, then 108.51 at European open before rebounding to 108.75. However, renewed selling emerged and price fell to session lows of 108.44 in New York on falling U.S. Treasury yields. However, the pair rebounded to 108.80 due to intra-day rally in U.S. stocks.
The single currency traded with a firm bias in Asia and climbed to 1.2297 before retreating to 1.2270 at European open, then ratcheting lower to session lows of 1.2235 in New York. Later, price pared its losses and rebounded to 1.2297 on broad-based euro strength near the close.
The British pound traded with an undertone in Asia and rose in tandem with euro to 1.3873 before retreating to 1.3825 at European open. However, renewed buying lifted price to session highs of 1.3876 in Europe before cable retreated again and erased intra-day gains and fell to 1.3797 in New York on Brexit transition uncertainty. Pair last traded at 1.3839 before New York close.
In other news, Reuters reported Bank of England policymaker Gertjan Vlieghe said on Monday that a further rise in British interest rates was likely to be appropriate if a strong global economy and a labour market pick-up continued to offset Brexit headwinds.
Data to be released on Tuesday:
Japan corporate goods price, Australia NAB business conditions, France non-farm payrolls, Swiss producer/import price, UK DCLG house price index, CPI, RPI, PPI input, PPI output, and U.S. redbook
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