Dollar falls vs yen and chf on Deutsche Bank concerns: Sept 30, 2016

Market Review - 29/09/2016  22:23GMT  

Dollar falls vs yen and chf on Deutsche Bank concerns

The greenback traded in a mixed manner against its peers as investors contemplated if the release of upbeat U.S. economic data was enough to warrant a rate hike from the Federal Reserve.  
Although the greenback rose in New York morning after mildly upbeat U.S. data, renewed concerns over Deutsche Bank led to broad-based safe-haven buying in the yen and swiss franc. 

U.S. Gross domestic product expanded at a 1.4 percent annual rate, the Commerce Department said on Thursday in its third estimate of GDP. That was up from the 1.1 percent rate it reported last month and higher than analysts' expectations. 

Versus the Japanese yen, the greenback rose in Asia on the back of poor Japan retail sales data together with a POEC deal to cut oil output and gained to 101.75 at European open before easing. Renewed buying at 101.35 in European morning lifted the pair again and dollar rose to an intra-day high at 101.84 in New York morning before retreating. Price later tumbled to 100.84 after Deutsche Bank news,

Although the single currency edged up to session high at 1.1236 ahead of European open, price pared its gains and dropped to an intra-day low at 1.1197 in New York on dollar's broad-based strength post the release of upbeat U.S. economic data. Later, euro found renewed buying there and price rallied to session high at 1.1250 in New York before retreating. 

The British pound rose to session high at 1.3059 ahead of Asian open before falling to an intra-day low at 1.2984 in European morning. Despite a brief recovery to 1.3032 at New York open, cable retreated once more on dollar's broad-based strength and later fell to 1.2955. 

In other news, Fed's Harker said 'rule based system of setting rates won't do a good job due to data uncertainty n revisions; core inflation is moving twds 2% target; convinced will achieve that sooner rather than later; worried about falling behind curve on inflation; Dec decision not clear yet; Nov is a live meeting; can't take it off the table due to election.' 

Data to be released on Friday: 

New Zealand building permits, Japan all household spending, CPI, jobs/applicants ratio, unemployment rate, industrial production, construction order, housing starts, Australia new home sales, China manufacturing PMI, service PMI, France, consumer spending, CPI, PPI, Swiss KOF indicator, U.K. consumer confidence, GDP, business investment, current account, index of service, Italy unemployment rate, producer prices, CPI, Eurozone inflation, unemployment rate, U.S. personal consumption, personal income, consumption adjusted, personal consumption expenditures, Chicago PMI, Reuters/Michigan consumer sentiment index, Canada GDP, producer prices and raw material price.