Dollar extends gain in holiday-thinned North American trading on short covering

Market Review - 20/02/2018   01:18GMT  

Dollar extends gain in holiday-thinned North American trading on short covering

The greenback extended last Friday's short-covering rally on gained broadly broadly vs its majors peers in holiday-thinned North American trading as financial markets in U.S. and Canada were closed for market holiday.  
  
Versus the Japanese yen, dollar climbed initially to 106.41 in NZ at Monday's open and despite a pullback to 106.10 in Asia, renewed buying emerged and lifted price, the pair later rose to session highs of 106.73 in N. American morning before retreating.  
  
Although the single currency staged a recovery initially in Asia, renewed selling quickly emerged n knocked price lower. The pair later ratcheted  
lower to 1.2369 in holiday-thinned N. American morning session before staging a recovery on short covering.  
  
Despite initial recovery to 1.4049 at Asian open,   
sterling resumed Fri's decline in Europe and then hit session lows of 1.3959 in N. American morning before rebounding in tandem with euro to 1.4021.  
  
In other news, PM May's spokesman said 'the series of speeches by ministers shows the gov't is setting out what it wants to achieve fm its future partnership with EU; Britain still wants to have the basis of a trade deal with the EU by Oct.'  
  
Data to be released on Tuesday:  
  
New Zealand PPI input, PPI output, GDT price index, China market holiday, Germany PPI, ZEW economic sentiment, ZEW current conditions, Swiss trade balance, exports, imports, industrial orders, EU ZEW economic sentiment, consumer confidence, UK CBI industrial trends survey, and Canada wholesale sales.