Dollar ends lower on return of risk sentiment

The greenback ended lower against majority of its peers on Wednesday as easing concerns over the Covid variant Omicron triggered the return of risk sentiment.  
  
Versus the Japanese yen, dollar traded sideways in Asia and edged down to 113.32 in Europe. The pair then found renewed buying there and rose to an intra-day high at 113.95 in New York on active cross-selling in jpy due to return of risk sentiment before retreating to 113.60 on broad-based usd's weakness.  
  
The single currency traded with a firm undertone and gained to 1.1295 ahead of European open. Despite retreating briefly to 1.1268 ahead of European open, price then rallied to an intra-day high at 1.1354 in New York on broad-based usd's selling due to return of risk sentiment together with cross-buying in euro especially vs sterling.  
  
The British pound traded with a firm bias and gained to 1.3261 in Asian morning, however, the pair met renewed selling there and tumbled to a near 1-year trough at 1.3162 in Europe on renewed UK Covid concerns. The pair then pared its losses and staged a short-covering rebound to 1.3244 in Ne York afternoon before retreating again to 1.3192 near the close.  
  
Reuters reported Britain could implement tougher COVID-19 measures, including advice to work from home, as early as Friday, according to a government source cited by Times Radio on Thursday.    "Rumours abounding of an imminent Quad meeting to discuss imposing Plan B as early as tomorrow morning, meaning Working From Home and COVID passports for large venues. One source tells me it's '85% likely'," Times Radio presenter Tom Newton Dunn said on Twitter.  
  
Further news from Reuters,Britain does not rule out the possibility of invoking Article 16 of the Northern Ireland protocol if a disagreement with the European Union over how trade with the province operates cannot be resolved, Prime Minister Boris Johnson said on Wednesday.    "The protocol is not working in the way that it needs to in order to guarantee the Belfast Good Friday Agreement. I don't believe things need to be that way. I think it could be worked differently, and we want our EU friends and partners to understand that," Johnson told lawmakers.  
  
Data to be released on Thursday:  

New Zealand manufacturing sales, U.K. TICS housing price balance, China PPI, CPI, Germany exports, imports, trade balance, current account, Canada leading index, U.S. initial jobless claims, continuing jobless claims, wholesales inventories and wholesale sales.