The greenback snapped its recent winning streak after rising to a more than three-month highs and ended the day lower against majority of its peers due to the return of risk sentiment on rise in U.S. stocks. (Dow ended the day at 34,798, up by 286 points or 0.83%).
Versus the Japanese yen, dollar traded sideways in Asia and briefly edged down to 109.81 at European open, however, renewed buying there lifted the pair to session highs at 110.38 in New York morning on cross-selling in jpy together with a rally in U.S. yields before trading sideways.
The single currency remained under pressure in Asia and dropped to a fresh 3-1/2 month low at 1.1753 in early European morning before rebounding strongly to 1.1782 in Europe. The pair then found renewed buying at 1.1761 at New York open and rose to session highs at 1.1804 near the close due to broad-based usd's retreat on return of risk sentiment.
The British pound came under selling pressure at 1.3642 at Asian open and dropped to session lows at 1.3592 at European open before rebounding to 1.3638 in European morning. Cable then found renewed buying at 1.3597 and rallied to an intra-day high at 1.3723 near New York close on return of risk-sentiment together with cross-buying of sterling especially vs euro.
In other news, Reuters reported the European Commission will seek "creative solutions" to difficulties in trade between Britain and Northern Ireland caused by Brexit, but will not renegotiate the Brexit deal on Northern Ireland, Commission Vice President Maros Sefcovic said. Britain on Wednesday demanded a new deal from the European Union to govern post-Brexit trade with Northern Ireland, saying it already had cause to step away from parts of the deal that it struck with Brussels only last year. "We will continue to engage with the UK, also on the suggestions made today," Sefcovic said in a statement. "We are ready to continue to seek creative solutions, within the framework of the Protocol, in the interest of all communities in Northern Ireland. However, we will not agree to a renegotiation of the Protocol," he said.
Data to be released on Thursday:
Japan market holiday, France business climate, U.K. CBI trends orders, EU ECB refinancing rate, ECB deposit rate, U.S. initial jobless claims, continuing jobless claims, U.S. existing home sales, leading index change, KC manufacturing index and EU consumer confidence.
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