Dollar climbs to near 13-month highs on safe-haven buying before paring gains after Turkish lira stabilises

Market Review - 13/08/2018  23:30GMT  

Dollar climbs to near 13-month highs on safe-haven buying before paring gains after Turkish lira stabilises

Although the greenback rallied initially to a near 13-month high in early trading on Monday as the Turkish lira tumbled to record lows in New Zealand, however, subsequent recovery in the embattled TRY after Turkish central bank boosted liquidity triggered gradual broad-based profit taking in the usd in New York trading and the greenback ended largely flat after a volatile session.  
  
Versus the Japanese yen, the greenback went through a hectic session. Although dollar initially dipped to 110.33 in New Zealand on selloff in the Turkish lira to fresh record lows, then recovered to 110.75, renewed selling emerged and knocked price to a 6-week low at 110.11 in Asia before staging a strong rebound to 110.93 in New York morning on short-covering. The pair last traded at 110.31 near the close.   
  
The single currency went through a roller-coaster ride. Although euro initially weakened to 1.1368 in New Zealand on Turkish lira selloff, then rebounded to 1.1412, renewed selling pressured price to a   
fresh 13-month low at 1.1365 in Asia. However, euro erased intra-day losses and ratcheted higher to session highs at 1.1433 in New York morning on broad-based short-covering. However, the pair retreated 1.1385 before moving narrowly.  
  
The British pound also went through a volatile session. Although price recovered to 1.2781 in New Zealand, cable fell to +session lows at 1.2731 in European morning. However, price then staged a strong rebound in tandem with euro to 1.2791 in New York morning before retreating again to 1.2743 and later moved narrowly in subdued New York session.  
  
In other news, Reuters reported the U.S. Embassy in Ankara has not put out a statement regarding pastor Andrew Brunson, an embassy official told Reuters on Monday, after a report on social media cited the embassy as saying he would be released from house arrest by Aug. 15.  
  
Data to be released on Tuesday :  
  
Australia NAB business conditions, NAB business confidences, China industrial output, retail sales, Japan industrial output, capacity utilization, France ILO unemployment rate, Germany GDP, CPI, HICP, France CPI, CPI (EU norm), ZEW economic sentiment, ZEW current conditions, Swiss producer/import price, UK claimant count, ILO unemployment rate, employment change, average weekly earnings, EU GDP, industrial production, ZEW economic sentiment, and U.S. import prices, export prices, Redbook sales.