Market Review - 23/01/2017 22:24GMT
Dollar falls broadly on Trump's "protectionist" stance
The greenback ended the day lower against majority of its peers on Monday as the lack of clarity over President Trump's economic policies continued to weigh on the buck. However, traders sold the greenback broadly on Trump's protectionist stance.
Versus the Japanese yen, dollar opened lower in New Zealand and then tumbled to 113.17 ahead of European open. Despite a brief recovery to 114.07 in New York morning on comments from Trump, the greenback dropped once more and hit session low at 112.70 in New York session.
U.S. President Trump said 'going to cut regulations, which have gotten out of control; he is very big on the environment but regulations can get in way; promises advantages for companies that make products in U.S.; will expedite factories, companies will get very fast approval to build in U.S.; companies that move abroad will face major border tax on products coming into U.S.; China, Japan mkt difficult to sell U.S. products there.'
The single currency traded with a firm bias on dollar's weakness and gained to session high at 1.0755 ahead of European open before retreating on Trump's comments. However, euro found renewed buying at 1.0706 in New York morning and rebounded to 1.0752. Price later rose to session highs of 1.0769 on renewed usd weakness.
The British pound also traded with a firm bias and gained to 1.2445 in Asia, then to 1.2472 at European open on dollar's broad-based weakness. Despite a brief retreat to 1.2424 in Europe, cable rose to a fresh 1-month high at 1.2494 in New York morning, later, cable rallied to 1.2546 at New York close.
Data to be released on Tuesday:
Japan manufacturing PMI, France manufacturing PMI, services PMI, German manufacturing PMI, services PMI, EU manufacturing PMI, services PMI, UK PSNB, PSNCR, U.S. redbook, manufacturing PMI and existing home sales. U.K. Supreme Court to deliver Brexit ruling around 09:30GMT.
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