Dollar falls broadly on falling in US yields and drop in consumer confidence: Dec 28, 2017

Market Review - 27/12/2017   22:37GMT  

Dollar falls broadly on falling in US yields and drop in consumer confidence

The greenback was broadly lower against majority of its peers on Wednesday as investors were optimistic about global economic growth in 2018. Falling U.S. treasury and yields and weak U.S. consumer confidence all contributed to the dollar's weakness in New York session.  
  
Versus the Japanese yen, dollar swung broadly sideways in lackluster Wednesday's session as focus was on euro and sterling. Price climbed to 113.36 at Asian open and then retreated to 113.15 in Europe before staging a brief bounce to session highs at 113.38 in European morning. However, the pair moved narrowly in lackluster New York session.   
  
The single currency traded with a firm bias and initially gained to 1.1864 at Asian open, price then ratcheted higher to 1.1885 ahead of European open and later climbed above last week's 1.1902 top to a fresh 3-week high at 1.1910 in New York following downbeat U.S. consumer confidence data and falling treasury yields.  
  
In a report, the Conference Board, a market research group, said its index of consumer confidence declined to 122.1 this month from a reading of 128.6 (revised down from an initial 129.5) in November. Analysts had expected the index to drop to just 128.0 in December.  
  
Although the British pound briefly dipped to 1.3368 in Asia, price found renewed buying and rose in tandem with euro to session highs of 1.3430 at New York open before retreating to 1.3390 deu to cross selling of sterling versus the euro.  
  
In other news, Reuters news, citing source from WSJ, White House has interviewed Richard Clarida and Lawrence Lindsey for Fed vice chairman role.  
  
On the data front, in a report, the National Association of Realtors (NAR) said its pending home sales index increased by 0.2% last month, compared to expectations for a drop of 0.4%. The reading on the index itself increased to 109.5 from the prior 109.3. That was its highest reading since June.  
  
Data to be released on Thursday :  
  
Japan industrial production, retail sales, and U.S. wholesale inventories, initial jobless claims, Chicago PMI.