Market Review - 23/07/2019 00:41GMT
Dollar ends flat in lackluster trading on Monday
The greenback traded largely flat in directionlsss trading on Monday as investors remained cautious ahead of the Federal Reserve's policy meeting next week on speculation that the central bank would cut its interest rates by 25 basis point.
Versus the Japanese yen, dollar remained on the front foot following Friday's gain and briefly hit session highs of 108.05 shortly after Asian open on usd's strength. Despite retreating to 107.82 in Europe on falling U.S. Treasury yields, price recovered to 107.99 in NY morning before edging lower toi 107.78.
The single currency traded in very narrowly in an 180point range in lackluster Monday's session. Euro dipped to 1.1207 in Europe before rebounding to 1.1225 in New York morning but then inched lower in New York afternoon session due to usd's firmness on rebound in U.S. yields.
Although the British pound moved sideways in Asia, price met renewed selling at 1.2512 in European morning and fell to session lows at 1.2456 on continued no-deal Brexit concern ahead of announcement of U.K. Conservative party's leadership election in Eurpoean morning on Tuesday. However, cable then pared its losses and rebounded to 1.2499 on cross-buying in sterling b4 easing in subdued New York afternoon.
In other news, Reuters reported a planned declaration on the future relationship between Britain and the European Union could provide an "innovative" way out of the current impasse in Brexit talks, Ireland's Foreign Minister Simon Coveney was quoted as saying on Monday. Coveney told journalists that the Withdrawal Agreement, which the EU agreed with outgoing prime minister Theresa May but was rejected by Britain's parliament, "is not going to change", the Irish public broadcaster RTE reported. But Coveney added that "there are other things that can change, namely the ambition in the future relationship declaration between the EU and UK".
Data to be released on Tuesday :
UK CBI trends order, U.S. redbook, home price, existing home sales, Richmond Fed manufacturing index, and EU consumer confidence.
Trendsetter does not warrant or guarantee the accuracy, timeliness or completeness to its service or information contained therein. Trendsetter does not give, whatsoever, warranties, expressed or implied, to the results to be obtained by using its services or information it provided. Users are trading on their own risk and Trendsetter shall not be responsible under any circumstances for the consequences of such activities. Trendsetter and its affiliates, in no event, be liable to users or any third parties for any consequential damages, however arising, including but not limited to damages caused by negligence whether such damages were foreseen or unforeseen.
Recommended Content
Editors’ Picks
EUR/USD turns negative near 1.0760
The sudden bout of strength in the Greenback sponsored the resurgence of the selling pressure in the risk complex, dragging EUR/USD to the area of daily lows near 1.0760.
GBP/USD comes under pressure and challenges 1.2500
GBP/USD now rapidly loses momentum and gives away initial gains, returning to the 1.2500 region on the back of the strong comeback of the US Dollar.
Gold retreats from highs on stronger Dollar, yields
XAU/USD trims part of its initial advance in response to the jump in the Dollar's buying interest and the re-emergence of the upside pressure in US yields.
XRP tests support at $0.50 as Ripple joins alliance to work on blockchain recovery
XRP trades around $0.5174 early on Friday, wiping out gains from earlier in the week, as Ripple announced it has joined an alliance to support digital asset recovery alongside Hedera and the Algorand Foundation.
Week ahead – US inflation numbers to shake Fed rate cut bets
Fed rate-cut speculators rest hopes on US inflation data. After dovish BoE, pound traders turn to UK job numbers. Will a strong labor market convince the RBA to hike? More Chinese data on tap amid signs of slow Q2 start.