Dollar falls against euro on rally in Deutsche Bank share after volatile session: Oct 3, 2016

Market Review - 01/10/2016  02:18GMT  

Dollar falls against euro on rally in Deutsche Bank share after volatile session

The greenback surrendered its early gains and dropped against majority of its peers as concerns over Deutsche bank eased due to market reports that the bank was close to a settlement.

Versus the Japanese yen, although the greenback spiked up to session high at 101.79 in thin Asian lunch time on stop buying, price swiftly pared its gains and tumbled to an intra-day low of 100.75 in early European morning. However, dollar found some support there and to 101.44 in New York on broad-based yen selling as rally in DB share boosted risk sentiment. 

The single currency met renewed selling at 1.1227 at European open n tumbled in Europe on increasing concerns over Deutsche Bank and hit an intra-day low at 1.1153 at New York open. Later, euro pared its losses and surged to session high at 1.1251 due to the rally in DB share price, triggered by reports that the bank may be close to a settlement. DB share price rallied strongly from record lows of 9.898 euro to session high of 11.71 euro. 

The British pound weakened in Asia and dropped to session low at 1.2936 in early European morning, however, price pared its losses and rallied to session high at 1.3024 in New York morning due to the rise in DB's share price, however, cable erased intra-day gain and later tumbled to 1.2955 near New York close.. 

In other news, BoJ's Kuroda said 'amount of BoJ's JGB buying may rise or fall from 80-trln-yen target in order to achieve yield curve control; BOJ is internally debating exit strategy from ultra-easy policy; speaking specifically about means for exiting ultra-easy policy too hastily could cause confusion in markets.' 

On the data front, the Commerce Department said that personal spending was unchanged in August from the prior month, below expectations for a 0.1% rise, and compared to a gain of 0.4% in July, that was revised up from an initial 0.3% advance. 

Data to be release:  
  
Australia AIG manufacturing index, Japan Tankan survey, Nikkei manufacturing PMI, Swiss retail sales, manufacturing PMI, Italy manufacturing PMI, public deficit/GDP, France manufacturing PMI, Germany manufacturing PMI, Eurozone manufacturing PMI, U.K. manufacturing PMI, U.S. manufacturing PMI, construction spending and Canada manufacturing PMI on Monday. 

New Zealand NZIER confidence, NZIER QSBO capacity, Australia building permits, RBA interest rate decision, Japan consumer confidence, U.K. construction PMI, Eurozone producer price index, U.S. Redbook index and ISM New York index on Tuesday. 

Australia AIG services index, retail sales, Italy services PMI, Germany services PMI, Eurozone services PMI, retail sales, U.K. services PMI, U.S. MBA mortgage application, ADP national employment, international trade, services PMI, durable goods, factory orders, Canada trade balance, exports and imports on Wednesday. 

Australia trade balance, imports, exports, Germany factory orders, Swiss CPI, U.S. initial jobless claims and Canada building permits on Thursday. 

Australia AIG construction index, Japan coincident indicator, leading indicator, Germany industrial production, France non-farm payrolls, budget balance, current account, industrial output, trade balance, imports, exports, U.K. Halifax house prices, industrial output, manufacturing output, good trade balance, non-farm payrolls, private payrolls, manufacturing payrolls, unemployment rate, average earnings, participation rate, wholesale inventories, wholesale sales, Canada employment change, unemployment rate, participation rate and Ivey PMI on Friday.