Dollar rieses broadly after Trump tax comments: Feb 10, 2017
|Market Review - 09/02/2017 22:05GMT
Dollar rieses broadly after Trump tax comments
The greenback rose against majority of its peers in New York session on Thursday after U.S. President Donald Trump said he would release his "phenomenal" tax plan in the next 2-3 weeks.
Versus the Japanese yen, dollar traded with a firm bias in Asia and gained to 112.43 in early European morning. Later, the greenback's intra-day ascent accelerated and price rallied to 113.24 in New York morning on comments from Trump together with upbeat U.S. jobless claims. Dollar later hit session highs of 113.34 near the close.
The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending February 4 decreased by 12,000 to a seasonally adjusted 234,000 from the previous week's total of 246,000. Analysts had expected jobless claims to rise by 4,000 from the original reading to 250,000 last week.
The single currency retreated to 1.0670 at European open before staging a rebound to 1.0710 in European morning, however, renewed selling there pressured the pair lower and price dropped to 1.0654 in New York on dollar's broad-based strength post comments from Trump. Later, price edged lower to session lows of 1.0551 before moving narrowly.
The British pound weakened to 1.2497 in Asia before rising to an intra-day high at 1.2582 in European morning on cross-buying of sterling especially vs euro. However, cable pared its gains and dropped to 1.2513 in New York on dollar's broad-based strength.
In other news, Fed's Bullard said 'uncertainty around fiscal policy unlikely to be resolved by Mar FOMC meeting; feels only one rate increased needed for all of 2017; that while immigration n trade are hot button issues, Trump administration policy shifts wud more likely be felt only over the long run; there is no imminent decision expected on when to decrease size of Fed's balance sheet.'
Data to be released on Friday:
Japan CGPI, China exports, imports, trade balance, France industrial production, Italy industrial output, UK construction output, industrial output, manufacturing output, trade balance, Canada employment, U.S. export price, import price and consumer sentiment.
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