Dollar ends mixed as rally in U.S. stocks deters usd buying, Sterling drops after UK PM moes into ICU.

Market Review - 07/04/2020  00:09GMT  

Dollar ends mixed as rally in U.S. stocks deters usd buying. Sterling drops after UK PM moes into ICU.

The greenback ended mixed on Monday on optimism that the coroanvirus pandemic may be reaching its peak after U.S. President Donald Trump said on Sunday that the country is seeing a "leveling-off" scenario while Italy reported its lowest daily death toll for more than two weeks. Sterling fell in New York after on news reports U.K. PM Boris Johnson had been moved in to intersive care.  
  
Versus the Japanese yen, dollar found renewed buying at 108.34 (Reuters) and gained to 109.08 at Asian open on firm rise in the Nikkei 225. The pair then ratcheted higher to session highs of 109.37 in European morning due to strong recovery in U.S. Treasury yields before pullback back to 108.85 at New York open on profit-taking. Later, price recovered to 109.24 due to rise in U.S. equities and then moved narrowly.  
  
The single currency traded sideways in Asia and renewed selling interest emerged at 1.0834 ahead of European open and fell to 1.0781 in New York morning on poor euro zone investor morale data due to coronavirus pandemic as well as cross-selling in euro, especially versus sterling. Later, the pair rebounded in tandem with cable to 1.0817.  
  
Although the British pound initially fell from 1.2288 (Reuters) in New Zealand to +session lows of 1.2210 at Asian open, failure to penetrate Friday's 1.2205 low triggered short-covering and cable staged a strong rebound in European morning to 1.2321 due partly to optimism that UK PM Johnson will be back at his office shortly. The pair then ratcheted higher to 1.2327 but only to weaken to 1.2250 in New York morning and then moved broadly sideways. Cable later tumbled to 1.2215 on news UK PM has been moved to ICU.    
  
Reuters reported earlier British Prime Minister Boris Johnson was moved to an intensive care unit on Monday after his coronavirus symptoms worsened though his Downing Street office said he was still conscious.    Britain has no formal succession plan should the prime minister become incapacitated, but Johnson, 55, has asked Foreign Secretary Dominic Raab to deputize for him.    
Johnson, 55, was admitted to hospital on Sunday night and had been undergoing tests after suffering persistent coronavirus symptoms, including a high temperature, for more than 10 days.    Downing Street had said he was in good spirits and still in charge, though his condition deteriorated in the early evening and he was transferred at about 1800 GMT to an intensive care unit - where the most serious cases are treated - at St Thomas' hospital in central London.  
  
Data to be released on Tuesday :  
  
New Zealand NZIER business confidence, GDT price index, Australia AIG services index, trade balance, imports, exports, RBA interest rate decision, Japan all household spending, coincident index, leading indicator, Germany industrial output, France current account, trade balance, imports, exports, Italy retail sales, U.S. redbook, JOLTS job openings, and Canada Ivey PMI.