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.
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