Dollar falls further in New York on Trump's tweet criticing strong dollar

Market Review - 21/07/2018  05:10GMT  

Dollar falls further in New York on Trump's tweet criticing strong dollar

The greenback continued its broad-based slide which started on Thursday and ended lower across the board on Friday after U.S. President Donald Trump complained about rising U.S. interest rates and strong dollar in a tweet. Elsewhere, sterling recovered from a 10-month low made on Thursday on renewed Brexit optimism following comments from UK Prime Minister May and EU's chief Brexit negotiator, Michel Barnier.  
  
Versus the Japanese yen, although dollar recovered to 112.62 in Asian morning, price met renewed selling and fell to 112.22 before rebounding to 112.50 in European morning. However, broad-based usd's weakness on Trump's tweet knocked price down to 111.57 in New York morning. Later, the pair fell to session lows of 111.39 at the close.  
  
Although the single currency dipped to 1.1626 in Asian morning, price rebounded to 1.1674 at European open. Despite a minor retreat to 1.1634, euro found renewed buying and intra-day gain accelerated at New York open on Trump's comments and hit session highs at 1.1739 at New York close due to broad-based usd's weakness.  
  
Although the British pound weakened to 1.2995 in Asian morning, price rebounded in tandem with euro to 1.3037 before retreating again to 1.2998 in European morning. However, renewed buying emerged and cable rallied to session highs of 1.3140 in New York on dollar's weakness and Brexit optimism.  
  
Reuters news, UK PM May said; 'we have delivered UK policy through votes in Parliament; backstop should not be necessary as we have new proposals.'  
  
Reuters reported Britain's proposals on its future relationship with the European Union contain constructive elements, but many questions remain, EU chief Brexit negotiator Michel Barnier said on Friday.  
  
Barnier said that 80 percent of that agreement was already in place, but that there was still no agreement on how to avoid a hard Irish border after Britain leaves the bloc.  
  
In other news, Reuters reported the Federal Reserve should hold off on any more increases in interest rates to avoid the risk of the yield curve inverting, St. Louis Fed President James Bullard said on Friday.  
  
Data to be released this week :  
Canada wholesale sales, EU consumer confidence, and U.S. national activity index, existing home sales on Monday  
  
Japan Nikkei manufacturing PMI, leading economic index, coincident index, France business climate, Markit manufacturing PMI, Markit services PMI, Germany Markit manufacturing PMI, Markit services PMI, Italy trade balance, EU Markit manufacturing PMI, Markit services PMI, UK CBI industry trends survey, and U.S. redbook, monthly home price, Markit manufacturing PMI, Markit services PMI, Richmond Fed manufacturing index on Tuesday  
  
New Zealand imports, exports, trade balance, Australia CPI, France producer prices, Germany Ifo business climate, Ifo current conditions, Ifo expectations, Swiss ZEW investor sentiment, UK BBA mortgage approvals, CBI distributive trades, and U.S. MBA mortgage application, building permits, new home sales on Wednesday  
  
Australia export, import, Germany GfK consumer sentiment, France consumer confidence, Italy business confidence, consumer confidence, EU ECB interest rate decision, ECB deposite rate decision, ECB monetary policy statement, and U.S. durable goods, goods trade balance, wholesale inventories, initial jobless claims, KC Fed manufacturing index on Thursday  
  
Japan Tokyo CPI, Australia PPI, France GDP, Germany import prices, France consumer spending, Italy producer prices, Canada budget balance, and U.S. GDP, PCE, University of Michigan sentiment on Friday