Dollar continues its post-Trump victory rally on inflation and growth expectation: Nov 11, 2016

Market Review - 10/11/2016  22:00GMT  

Dollar continues its post-Trump victory rally on inflation and growth expectation

The greenback gained against majority of its peers on Thursday as investors brushed off Trump's surprise victory and focused on his acceptance speech, which hinged on unity and economic growth. 

Versus the Japanese yen, despite retreating to session low at 104.97 in Asian morning, dollar pared its losses and rallied to a fresh 3-1/2 month peak at 104.95 in New York morning due partly to broad-based selling in yen. 

The single currency traded with a firm bias and edged up to 1.0954 in Asia, however, renewed selling there pressured the pair lower and euro dropped to session low at 1.0865 in New York morning on dollar's broad-based strength. 

The British pound traded sideways in Asia and edged up to session high at 1.2456 in early European morning, however, price met renewed selling there and dropped to an intra-day low at 1.2377 in Europe. Later, cable staged pared its losses and rallied to 1.2528 in New York morning on active cross-buying of sterling especially vs euro, price later hit session highs of 1.2585 before easing. 

In other news, ECB's Constancio said 'confident that recovery in euro zone economy will continue; will see unemployment in single digits next year; can expect by spring next year that headline inflation will be well above 1 pct; core inflation not accelerating still a cause for concern; confident in path towards normalization of inflation.' 

On the data front, in a report, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending November 5 decreased by 11K to a seasonally adjusted 254K from the previous week's total of 265K. Analysts had expected jobless claims to drop by 5K to 260K last week. 

Japan corporate goods price, Germany CPI, Harmonised index of consumer prices, U.K. construction output and U.S. Reuters/Michigan consumer sentiment index.