Dollar gains broadly after U.S. presidential debate: Sept 28, 2016

Market Review - 27/09/2016  22:29GMT  

Dollar gains broadly after U.S. presidential debate

The greenback ended the day slightly higher against majority of its peers except the yen as a selloff in oil triggered risk aversion and as investors digested the result of the first U.S. Presidential debate. 

Versus the Japanese yen, although the greenback rallied from Asian 1-month low at 100.09 to an intra-day high at 100.99 at European open. However, dollar pared its gains and retreated sharply to 100.19 in New York morning on broad-based buying of the yen due to risk aversion. 

The single currency remained under pressure in Asia and despite a brief spike up to session high at 1.1259 in European morning, price tumbled to Monday's low at 1.1191 in New York morning due to active cross-selling of euro especially vs sterling, euro later pared inra-day loss and recovered to 1.1225. 

The British pound gained in Asia and briefly spiked up to session high at 1.3010 in early European morning before falling sharply to an intra-day low at 1.2937 in Europe. Cable pared its losses and staged a strong rebound to 1.3007 in New York morning on cross-buying of sterling, cable later rose to session high of 1.3028..

In other news, Japan PM Abe said 'BoJ's new framework intended to strengthen monetary policy and achieve 2 pct inflation target at earliest possible time; specific policy steps should be left to BoJ, Governor Kuroda has my trust; Govt will continue to work with BoJ to achieve 2 pct inflation and strong economic growth; too early to talk about BoJ exit strategies.' 

On the data front, The U.S. Conference Board consumer confidence index rose more than expected in September. The index jumped to 104.1 in September from a revised 101.8 in August, the CB said Tuesday.  

Data to be released on Wednesday: 

Germany consumer confidence, Swiss consumption indicator, France consumer confidence, Italy consumer confidence, business confidence, wage inflation, U.S. MBA mortgage application and durable goods.