Dollar ends flat after rising briefly on Fed Rosengren's hawkish comments: Sept 26, 2016

Market Review - 24/09/2016 02:19GMT  

Dollar ends flat after rising briefly on Fed Rosengren's hawkish comments

The greenback ended the day flat against majority of its peers on Friday, dollar briefly climbed broadly in New York morning on hawkish comments from Boston Federal Reserve President Eric Rosengren before paring intra-day gain. 

Reuters reported Boston Fed President Eric Rosengren said on Friday that he believed interest rates should be raised gradually now and warned that a fall in the unemployment rate below its sustainable level could derail economic recovery in the United States. 

Versus the Japanese yen, the greenback rose to session high at 101.24 in early Asian morning on yen's broad-based selling before retreating to intra-day low of 100.68 in European morning. However, dollar pared its losses and staged a recovery to 101.12 in New York morning after comments from Rosengren, price later edged higher 101.16. 

The single currency remained under pressure and weakened to session low at 1.1193 in Asian morning before rising to at 1.1229 at New York open. Euro met renewed buying at 1.1201 in New York morning and later ratcheted higher to day's peak of 1.1240. 

The British pound remained under pressure and continued to ratchet lower in Asia. Intra-day decline accelerated in Europe on cross-selling of sterling especially vs euro and spiked down to a fresh 1-month low at 1.2915 in New York morning on renewed market concerns over Brexit before rebounding on short-covering. Reuters reported earlier U.K. Foreign Secretary Boris Johnson said he expected formal divorce proceedings between Britain and the EU to begin early next year, and that two years may not be needed to negotiate a deal. 

In other news, Fed's Kashkari said'he still thinks there's slack in the labor mkt, wants further declines in unemployment; sees long-run U.S. growth potential a bit less than 2%; worried more about raising rates too fast than too slow; he does't see a housing bubble in U.S. economy.' 

On the data front, market research group Markit said that its flash manufacturing purchasing managers’ index (PMI) dropped to 51.4 in September from the prior month’s final reading of 52.0.

Data to be release: 

New Zealand exports, imports, trade balance, Italy retail sales, trade balance, Germany IFO survey, U.K. BBA mortgage approvals, U.S. new home sales and Dallas Fed Manufacturing Index on Monday. 

Italy industrial orders, industrial sales, U.K. CBI Distributive Trades Survey, U.S. building permits, Redbook index, S&P/Case-Shiller home price indices, Markit service PMI, consumer confidence and Richmond Fed manufacturing index on Tuesday. 

Germany consumer confidence, Swiss consumption indicator, France consumer confidence, Italy consumer confidence, business confidence, wage inflation, U.S. MBA mortgage application and durable goods on Wednesday. 

Japan retail trade, Germany unemployment rate, unemployment change, CPI, HICP, U.K. mortgage approvals, Eurozone business climate, economic sentiment, industrial sentiment, service sentiment, consumer confidence, consumer inflation expectation, selling price expectation, U.S. GDP, personal consumption expenditures, good trade balance, wholesale inventories, retail inventories, initial jobless claims and pending home sales in Thursday. 

New Zealand building permits, Japan all household spending, CPI, jobs/applicants ratio, unemployment rate, industrial production, construction order, housing starts, Australia new home sales, China manufacturing PMI, service PMI, France, consumer spending, CPI, PPI, Swiss KOF indicator, U.K. consumer confidence, GDP, business investment, current account, index of service, Italy unemployment rate, producer prices, CPI, Eurozone inflation, unemployment rate, U.S. personal consumption, personal income, consumption adjusted, personal consumption expenditures, Chicago PMI, Reuters/Michigan consumer sentiment index, Canada GDP, producer prices and raw material prices on Friday.