Dollar falls broadly against its peers for a second day: Sept 8, 2016

Market Review - 07/09/2016 22:17GMT 

Dollar falls broadly against its peers for a second day

The greenback remained lower against majority of its peers on Wednesday as recent downbeat U.S. economic data continued to weigh on speculation of a Fed rate hike. 

Versus the Japanese yen, the greenback fell sharply ahead of Asian open and hit a session low at 101.21 in Asian morning on dollar's broad-based weakness. However, price pared its losses and rebounded to 101.86 in New York afternoon session before retreating. 

The single currency briefly retreated to 1.1233 in Asian morning before rising to an intra-day high at 1.1265 at European open on cross-buying of euro vs sterling. Later, euro pared its gains and dropped to 1.1129 at New York open before rising to session highs of 1.1271 briefly but later retreated to 1.1229 again. 

The British pound remained under pressure in Asia and tumbled to 1.3359 in European morning after the release of poor UK manufacturing output data, then lower to a session lows of 1.3320 on comments from Bank of England Governor Mark Carney during New York morning. 

Output in manufacturing fell 0.9 percent following a 0.2 percent drop in June. Economists polled by Reuters had expected manufacturing output to fall 0.4 percent in July. 

In other news, BoE's Carney said 'the package of measures I supported in august is timely, coherent and comprehensive; all of the elements in stimulus package have scope to be increased; the bank continues to stand ready to take whatever action is needed; absolutely welcome that there has been a rebound in some measures of economic confidence; we expected PMI n CBI surveys to bounce back; bounce back in UK data is running a bit stronger than the BoE's Q3 0.1% GDP forecast; part of the bounce back is because BoE took timely action.' 

Data to be released on Thursday: 

Japan GDP, trade balance, current account, Eco Watchers Survey, Australia trade balance, imports, exports, France non-farm payrolls, Eurozone ECB refinancing rate, ECB deposit rate, U.S. initial jobless claims, Canada building permits, capacity utilization and news housing price.