Dollar broadly lower against major currencies on profit-taking: Dec 19, 2016

Market Review - 17/12/2016  04:05GMT 

Dollar broadly lower against major currencies on profit-taking

The greenback moved sideways versus its major peer currencies on Friday and edged lower as investors booked profits on the recent rally inspired by the Federal Reserve's 2017 higher rate hike projection.  

Versus the Japanese yen, dollar retreated to 117.96 at Asian open before trading sideways for remainder of the session. Despite intra-day rebound to 118.43 in European morning, price tumbled to session low at 117.47 in New York morning on news of seizing of U.S. Navy underwater drone by China's navy, however, price soon recovered and move sideways in New York afternoon.  

The single currency found renewed buying at 1.0406 at Asian open and rose to 1.0472 in European morning on dollar's weakness. Euro pared its gains and dropped to session low at 1.0401 in New York morning due partly to cross-selling of euro especially vs sterling. However, intra-day brief selloff in dlr/yen led to broad-based usd's weakness and sent the single currency to session high of 1.0474 ahead of New York midday before retreating.  

The British pound rose from Asian low at 1.2383 and hit 1.2464 ahead of New York open on dollar's weakness. Later, cable pared its gains and retreated to 1.2403 in New York morning before stabilising. However, price found renewed buying there and rose once again to session high at 1.2510 in New York due to broad-based usd's weakness.  

In other news, German Fin Min spokesman said 'prelim report of 4 institutions on Greece's one-off measures is completed, report is quite critical.'  

On the data front, the Commerce Department said Thursday housing starts fell 18.7% to 1.090 mln units from October. Analysts had expected housing starts to fall to 1.230 mln units. Building permits fell 4.7% to 1.201 mln vs. forecast fall to 1.240 mn from 1.260 mn.  

Data to be released: 

New Zealand consumer sentiment, building consents, Japan exports, imports, trade balance, China house prices, Germany Ifo business climate, current conditions, EU labour costs and U.S. services PMI on Monday.  

Japan BoJ rate decision, Swiss trade balance, Germany PPI, EU current account, UK CBI trades, Canada wholesale sales and U.S. Redbook retail sales on Tuesday.  

New Zealand exports, imports, trade balance, France PPI, Italy WPI, UK PSNB, PSNCR, U.S. existing home sales and EU consumer confidence on Wednesday.  

New Zealand current account, GDP, Italy industrial orders, retail sales, UK GDP, U.S. durable goods, GDP, PCE, core PCE, jobless claims, monthly home price, personal income, personal consumption, Canada CPI and core CPI on Thursday.  

Japan market holiday, Germany consumer sentiment, France consumer spending, Canada GDP, U.S. new home sales and University of Michigan consumer sentiment on Friday.