Dollar ends mixed as rebound in global stocks eases Covid variant concerns

Although the greenback continued its recent winning streak and rose to fresh 3-month highs against majority of its peers on Tuesday, intra-day rebound in gloabl stocks together with U.S. yields allayed market fears over the spread of the delta coronavirus variant triggered profit taking on usd as well as safe-haven yen and the swiss franc. The Dow rebounded and closed up 549 points or 1.62% at 34,511.  
  
Versus the Japanese yen, dollar rebounded from 109.38 to 109.74 in Europe before retreating to 109.34. However, the pair found renewed buying there and rose to session highs of 109.95 in New York morning in tandem with U.S. yields and U.S. stocks.  
  
The single currency remained under pressure in Asia and dropped to 1.1773 in early European morning before rebounding to 1.1804 in Europe. However, the pair met renewed selling there and fell in tandem with the pound to a 3-1/2 month trough at 1.1756 in New York on usd's broad-based strength before rebounding on short covering.  
  
The British pound met renewed selling at 1.3689 in Asian morning and fell to 1.3628 in early European morning before rebounding to 1.3676 in Europe. Cable then fell again to a fresh 5-1/2 month bottom at 1.3573 in New York morning on broad-based selling in sterling due to market concerns on recent surge in Covid cases in England before staging a short covering rebound to 1.3632 near the close.  
  
Reuters reported British Prime Minister Boris Johnson told his Irish counterpart Micheal Martin on Tuesday that the European Union had to show pragmatism to end a stand-off over rules for post-Brexit trade involving Northern Ireland.    "The prime minister emphasised that the way the Protocol is currently operating is causing significant disruption for the people in Northern Ireland," Johnson's Downing Street office said, referring to the rules.  
  
News from Reuters on the data front, U.S. homebuilding increased more than expected in June, though expensive lumber as well as shortages of labor and land continued to constrain builders' ability to fully take advantage of robust demand for housing.     Housing starts rose 6.3% to a seasonally adjusted annual rate of 1.643 million units last month, the Commerce Department said on Tuesday. Data for May was revised down to a rate of 1.546 million units from the previously reported 1.572 million units.    Economists polled by Reuters had forecast starts rising to a rate of 1.590 million units. Despite last month's increase, starts remained below March's rate of 1.725 million units, which was the highest level since June 2006.  
  
Data to be released on Wednesday :  
  
Japan exports, imports, trade balance, Australia Westpac leading index, retail sales, U.K. PSNB, PSNCR, Italy industrial sales, U.S. Mortgage application and new housing price index.