Dollar gains on rebound in the Dow, sterling and euro fall ahead of EU summit

Market Review - 14/10/2018  23:54GMT  

Dollar gains on rebound in the Dow, sterling and euro fall ahead of EU summit

The greenback was broadly higher against majority of its peers on Friday except versus Japanese yen due partly to rebound in U.S. equities. The single currency and British pound fell as investors booked profits from recent gains ahead of European Union summit next week.  
  
Versus the Japanese yen, although dollar recovered from Thursday's 3-week low at 111.84 to 112.50 at European open, price met renewed selling and fell to session lows at 111.88 in New York due to retreat in U.S. Treasury yields and U.S. equities.  
  
Although the single currency extend its recent winning streak which started on Tuesday and climbed to a fresh 10-day high at 1.1610 in Asia, price met renewed selling and fell steadily to session lows at 1.1535 in New York as investors remained cautious ahead of next week's EU summit and booked profits ahead of the weekend.  
  
Although the British pound traded sideways in Asia and rose to a fresh 2-1/2 week high at 1.3259 (Reuters) in European morning on cross-buying in sterling, renewed selling emerged and cable fell in tandem with euro to session lows at 1.3148 in New York as investors took profit from its recent rally ahead of EU summit next week where a Brexit deal may be closed.  
  
In other news, Reuters reported the Democratic Unionist Party would vote "no confidence" in British Prime Minister Theresa May unless a "sensible Brexit" is delivered, one of the party's 10 members of parliament told the BBC Radio Ulster's Inside Politics programme on Friday.  
  
Reuters revealed that U.S. President Donald Trump would go through with plans to meet with Chinese President Xi Jinping at the G20 summit next month if it looked like it would be a positive meeting, U.S. Treasury Secretary Steven Mnuchin said on Friday.  
  
Data to be released this week :  
  
UK Rightmove house price, Japan industrial production, capacity utilization, Swiss producer/import price, Italy budget deadline, and U.S. NY Fed manufacturing index, retail sales, business inventories on Monday.  
  
New Zealand CPI, GDT price index, Australia Westpac leading index, China PPI, CPI, Germany import price, ZEW economic sentiment, ZEW current conditions, Italy industrial orders, industrial sales, CPI, CPI (EU norm), trade balance, UK ILO unemployment rate, employment change, average weekly earnings, DCLG house price index, EU trade balance, and U.S. PCE, redbook, industrial production, capacity utilization, manufacturing output, JOLTS job openings, NAHB housing market index on Tuesday.  
  
UK CPI, RPI, PPI input prices, PPI output prices, EU Brexit summit, construction output, HICP, Canada manufacturing sales, and U.S. MBA mortgage application, building permits, housing starts, FOMC minutes on Wednesday.  
  
Japan exports, imports, trade balance, Australia NAB business confidence employment change, unemployment rate, EU Brexit summit, Germany wholesale price index, Swiss imports, exports, trade balance, UK retail sales, and U.S. initial jobless claims, Philadelphia Fed survey, leading indicator on Thursday.  
  
Japan national CPI, All industry activity index, China industrial output, retail sales, GDP, EU current account, UK PSNB, PSNCR, Canada CPI, retail sales, and U.S. existing home sales on Friday.