Dollar ends largely flat despite selloff in U.S. yields

Although the greenback was under pressure in early New York trading on Wednesday due to intra-day selloff in U.S. yields, price later pared losses and ended the day largely unchanged.     

 Reuters reported new orders for U.S.-made capital goods increased more than expected in September, but stretched supply chains likely slowed the pace of growth in business spending on equipment and hampered the overall economy in the third quarter. Orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, rose 0.8% last month, the Commerce Department said on Wednesday. Data for August was revised lower to show these so-called core capital goods orders rising 0.5% instead of 0.6% as previously reported. Economists polled by Reuters had forecast core capital goods orders gaining 0.5%.  
  
Versus the Japanese yen, dollar met renewed selling at 114.21 in Australia and retreated to 113.94 in Asia. The pair then tumbled in Europe on active cross-buying in jpy and fell to an intra-day low at 113.40 in New York morning. Later, the pair staged a short-covering rebound to 113.87 near the close.  
  
The single currency traded with a firm bias in Asia and rebounded to 1.1613 in early European morning. Despite falling to session lows at 1.1585 in European morning, price rebounded to 1.1625 at New York open due partly to cross-buying of euro especially vs sterling before retreating to 1.1588 on usd's broad-based rebound.  
  
The British traded sideways in Asia before briefly edging up to 1.3781 in early European morning. The pair then tumbled to 1.3711 ahead of New York open and despite subsequent rebound to 1.3754 on UK Finance Minister Sunak's budget, price later fell again to a 12-day low at 1.3709 in New York morning before staging a short-covering bounce to 1.3759.   
  
More news from Reuters, British finance minister Rishi Sunak said he had written to the Governor of the Bank of England on Wednesday to reaffirm its remit to achieve low and stable inflation. People should be reassured they have a strong track record in doing so," he told parliament as he delivered his budget statement. He said the Office for Budget Responsibility had forecast CPI inflation of 4% over the next year.  
  
Data to be released on Thursday:  

Japan retail sales, BoJ interest rate decision, Australia export prices, import prices, Germany unemployment change, unemployment rate, Italy business confidence, consumer confidence, producer prices, EU business climate, economic sentiment, industrial sentiment, services sentiment, consumer confidence, ECB refinancing rate, ECB deposit rate, Germany CPI, U.S. GDP, PCE prices, initial jobless claims, continuing jobless claims, pending home sales, KC Fed manufacturing and Canada average weekly earnings.