Dollar falls broadly in thin end-of-the year trading: Jan 02, 2018

Market Review - 30/12/2017   04:17GMT  

Dollar falls broadly in thin end-of-the year trading

The greenback extended its losing streak from Tuesday and fell against majority of its peers on the last trading day of 2017 as investors saw signs of strong global economic recovery especially in euro area.  
Versus the Japanese yen, dollar remained under pressure on Friday and tumbled below Thursday's trough at 112.67 to a fresh 10-day low of 112.47 in European afternoon on broad-based usd's weakness before trading narrowly in New York session ahead of New Years. However, short covering later lifted price to 112.72 and price closed near this level at the close.  
Although the single currency initially traded narrowly in Asia and briefly dipped to 1.1937, price escalated quickly at European morning and rallied above November's peak at 1.1961 to 3-month high at 1.2028 near New York midday on usd's weakness and due partly to upbeat Germany CPI data. Price later retreated to 1.1992 on profit taking and last traded at 1.2002 near the close.  
Reuters reported German inflation accelerated ahead of expectations in December, the Federal Statistics Office said on Friday, with consumer prices rising 1.6 percent year-on-year, compared to the 1.4 percent forecast by analysts polled by Reuters.  
The British pound traded in a firm bias and price sharply rallied above Thursday's peak at 1.3456 to 1.3512 at European morning. Cable then ratcheted higher to 3-week peak of 1.3543 in New York morning before retreating in tandem with euro to 1.3495 near the close.  
In other news, Reuters reported Spanish Prime Minister Mariano Rajoy called for a Catalan parliament to be formed on Jan. 17, the first step in reinstating a local government that was taken over by Madrid after illegally declaring independence in October.  
Data to be released :  
New Zealand market holiday, Australia market holiday, China market holiday, EU market holiday, Italy market holiday, Germany market holiday, France market holiday, Swiss market holiday, U.K. market holiday, U.S. market holiday, and Canada market holiday on Monday.  
New Zealand market holiday, GDT price index, Australia AIG manufacturing index, China Caixin manufacturing PMI, Italy Markit manufacturing PMI, France Markit manufacturing PMI, Germany Markit manufacturing PMI, EU Markit manufacturing PMI, Canada Markit manufacturing PMI, and U.S. Markit manufacturing PMI on Tuesday.  
Swiss retail sales, manufacturing PMI, Germany unemployment change, unemployment rate, U.K. Markit construction PMI, and U.S. MBA mortgage application, redbook, ISM New York index, construction spending, ISM manufacturing PMI, FOMC minutes on Wednesday.  
Australia AIG services index, Japan Nikkei manufacturing PMI, China Caixin services PMI, Italy Markit services PMI, unemployment rate, France Markit services PMI, Germany Markit services PMI, EU Markit services PMI, U.K. mortgage approvals, Markit services PMI, U.S. ADP employment, initial jobless claims, Markit services PMI Final, and Canada producer prices on Thursday.  
Japan Markit services PMI, Australia trade balance Australia, imports, exports, Germany retail sales, France consumer confidence, CPI, Italy retail sales, EU producer prices, U.K. BRC retail sales, U.S. non-farm payrolls, unemployment rate, average earnings, trade balance, durable goods revised, durables ex-defence revised, durables ex-transportation revised, factory orders, ISM non-manufacturing PMI, and Canada employment change, unemployment rate, trade balance, exports, imports, Ivey PMI on Friday.  

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