Dollar ends mixed vs majors buy gain against commodity currencies

Market Review - 06/12/2018  00:07GMT  

Dollar ends mixed vs majors buy gain against commodity currencies

The greenback ended mixed against majority of its peers on Wednesday as U.S. stock markets were closed for a National Day of mourning for George H.W. Bush, however, dollar gained broadly against commeodity currencies with the loonie hitting a 17-month trough of 1.3400. Meanwile, sterling recovered from Tuesday's 17-month low as investors grew confident that UK would not leave EU without any deal.  
  
Versus the Japanese yen, dollar snapped its recent losing streak and rose from 112.65 in Australia to 113.12 at European open after China Commerce Ministry said U.S.-China trade meeting successful and Chinese side will work to implement specific issues agreed upon as quickly as possible, then ratcheted higher to session highs at 113.24 in holiday-thinned North American session on usd's intra-day strength.  
  
The single currency went through a roller-coaster ride. Although price retreated to 1.1317 in Asia, euro rose to 1.1361 in European afternoon after sources say ECB debating ways to withdraw stimulus in 2019 and despite a brief but sharp spike down to   
session lows of 1.1311 on dollar's strength, however, the pair rebounded to 1.1358 in Norther American session on short covering.  
  
Reuters reported European Central Bank policymakers are debating ways to wean the euro zone off years of easy money, floating ideas such as a new kind of multi-year loans and staggered increases in interest rates, sources told Reuters.  
  
The British pound went through a volatile session. Although price initially fell to 1.2672 in Asia on more negative Brexit news, cable found renewed and rallied to session highs at 1.2798 in Europe on renewed Brexit optimism that UK would not leave EU without any deal before sharply retreating to 1.2706 in Norther American session on buying in the greenback. However, the pair later moved narrowly in N. American afternoon session.  
  
Reuters reported the Northern Irish party propping up British Prime Minister Theresa May's government will vote against her Brexit divorce deal in a key vote in parliament next week, according to one its lawmakers.   
  
In other news, Reuters reported Britain could be trapped "indefinitely" in a customs union with the European Union if lawmakers back Prime Minister Theresa May’s Brexit deal, according to details of the government's full legal advice on the deal published on Wednesday.   
  
The Protocol refers to the so-called Irish backstop agreement in May's withdrawal deal she has agreed with the EU to prevent the return of border controls between Northern Ireland and the Irish republic.   
  
On the data front, the UK services purchasing managers' index fell to 50.4 in November from 52.2 the previous month. It was the weakest reading since July 2016, just after the Brexit vote and was well short of forecasts of 52.5.  
  
Data to be released on Thursday :  
  
Australia retail sales, trade balance, imports, exports, Germany industrial orders, France current account, U.S. ADP employment change, trade balance, initial jobless claims, labor costs, productivity, Markit services PMI, durable goods, durables ex-defense, durables ex-transport, factory orders, ISM non-manufacturing PMI, and Canada trade balance, exports, imports, Ivey PMI.