Although the greenback remained on the front foot in Asia and European morning, dollar later erased intra-day gain and ended Tuesday lower across the baord as investors booked in profits from usd's recent rise together with retreat in U.S. Treasury yields.
Versus the Japanese yen, although dollar continued its recent ascent and gained to 106.92 in Asian morning, then to a fresh 6-month high of 106.95 in Europe, price later retreated to 106.68 in New York on cross-buying in jpy as well as weakness in U.S. Treasury yields.
The single currency went through a roller-coaster ride. Although euro fell from 1.2050 in Australia to a 24-day low of 1.1992 in Europe on continued usd's strength, price pared intra-day losses and recovered to 1.2094 near New York close on broad-based pullback in the greenback.
Reuters reported the European Central Bank should lift bond buys or even increase the envelope earmarked for such purchases if it is needed to keep yields down, ECB board member Fabio Panetta said on Tuesday after weeks of steady increases in borrowing costs.
The British pound also dropped from 1.3933 (Reuters) at Asian open to an 11-day low of 1.3860 in Europe on usd's strength. However, the pair then erased intra-day losses and rallied to 1.3976 in New York on renewed selling interest in the greenback together with cross-buying in sterling.
Data to be released on Wednesday :
Australia AIG construction index, GDP, New Zealand building permits, UK BRC shop price index, Markit services PMI, Japan services PMI, China Caixin services PMI, Swiss CPI, France budget balance, Markit services PMI, Italy Markit services PMI, GDP, Germany Markit services PMI, EU Markit services PMI, producer price index, U.S. MBA mortgage applications, ADP employment change, Markit services PMI, ISM non-manufacturing PMI, and Canada building permits.
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