Dollar climbs to a near 2-year high before parig gain on profit taking

Although dollar continued its recent winning streak on Friday and gained to a near 2-year peak against its major peers (dollar index hit 100 for the first time since May 2020) on the back of rally in U.S. yields where benchmark 10-year jumped a a 3-year high of 2.73% following release of hawkish Fed minutes earlier in the week as well as hawkish comments by FOMC officials, profit taking ahead of the weekend knocked the greenback lower in New York session.  
  
Versus the yen, the pair initially penetrated Thursday's 124.00 high to 124.23 in Australia before retreating in tandem with U.S. yields to 123.68 in Asia, however, price regained traction in Europe as U.S. yields contineud its recent ascent and hit a 10-day peak of 124.67 in New York morning before paring intra-day gain and fell back to 124.28 due to broad-based usd's retreat on profit taking.  
  
The single currency remained on the back foot in Asia and easily penetrated Thursday's low to an one-month trough of 1.0849 in Europe. Despite staging a short-covering rebound to 1.0891, price later hit session lows of 1.0837 in New York morning before rebounding on intra-day usd's retreat to 1.0887. Price last traded at 1.0877 near the close.  
  
The British pound moved narrowly in Asia and fell in tandem with euro to 1.3027 in Europe, later price penetrated Mar's 16-month trough of 1.3000 to 1.2983 in New York morning but then rebounded to 1.3039 near the close due to broad-based usd's retreat.  
  
In other news, Russian Foreign Minister Sergei Lavrov said on Friday that Belarus should provide security guarantees for Ukraine in the future, once Kiev affirms its neutral status.   "At the request of the Ukrainian side, its neutral, non-bloc, non-nuclear status should be accompanied by security guarantees,"   "We proposed that the Republic of Belarus should, of course, be among such guarantor countries."  
  
Data to be released this week :  
  
New Zealand retail sales, China CPI, PPI, U.K. construction output, manufacturing output, industrial output, GDP, trade balance and Canada leading index on Monday.  
  
U.K. BRC retail sales, average weekly earnings, employment change, ILO unemployment rate, claimant count, Japan producer prices, Australia NAB business confidence, NAB business conditions, Germany HICP, CPI, ZEW current conditions, ZEW economic sentiment, France exports, imports, trade balance, current account, EU ZEW survey expectation, U.S. CPI, redbook and Federal budget on Tuesday.  
  
New Zealand food price index, RBNZ interest rate decision, Japan machinery orders, Australia consumer sentiment, China trade balance, imports, exports, U.K. PPI output prices, PPI input prices, RPI, CPI, DCLG house price, Italy industrial output, U.S. MBA mortgage application, PPI and Canada interest decision on Wednesday.  
  
New Zealand manufacturing PMI, U.K. RICS housing price balance, Australia unemployment rate, employment change, Japan industrial production, Germany wholesale price index, Swiss producer/import price, EU ECB deposit rate, ECB refinancing rate, U.S. retail sales, continuing jobless claims, initial jobless claims, imports prices, export prices, University of Michigan sentiment, business inventories, Canada wholesale trade and manufacturing sales on Thursday.  
  
New Zealand Market Holiday, Australia Market Holiday, China house prices, Swiss Market Holiday, Germany Market Holiday, U.K. Markey Holiday, France CPI, Italy CPI, U.S. Market Holiday, NY Fed manufacturing, manufacturing output, capacity utilization, industrial production, Canada Market Holiday and ADP employment change on Friday.