Dollar pares gains on selloff in the Dow after U.S. 10-year yield rallied above 3% level

Market Review - 24/04/2018   23:42GMT  

Dollar pares gains on selloff in the Dow after U.S. 10-year yield rallied above 3% level

The greenback ended mixed against majority of its peers on Tuesday as selloff in U.S. stocks after benchmark U.S. 10-year Treasury yield climbed above the psychological 3 percent level checked intra-day usd gains. Sterling and euro rebounded on short-covering from recent decline.   
  
Versus the Japanese yen, dollar traded with a firm undertone in Asia and rose to 108.87, then continued to climb to 108.91 in European morning. Intra-day gain accelerated at New York open and price rallied to a fresh 2-month peak of 109.20 in New York on rising U.S. Treasury yields before retreating to 108.55 due to active safe-haven yen buying following decline in the Dow.  
  
Although the single currency staged a rebound following a sharp but brief fall to 1.2185 in Asian morning and climbed to 1.2223 at European open, price met renewed selling and fell to a fresh near 2-month low at 1.2182 on soft Germany Ifo data. However, euro erased intra-day losses and rallied in tandem with cable to session highs of 1.2245 in New York afternoon on short-covering from recent decline.  
  
The Munich-based Ifo economic institute said its business climate index, based on a monthly survey of companies, fell to 102.1 from 103.03 in March. The reading was below economists' expectations for 102.07. Businesses assessed the current situation worse, with the sub-index falling to 105.7 from 106.6 the previous month. Their expectations also dropped to 98.7 from 100.0 in March.  
  
Despite the British pound resumed its recent losing streak and fell to a fresh 1-month low of 1.3918 in Asian morning, price staged a rebound to 1.3953 at European morning before retreating again to 1.3920. However, cable then erased intra-day losses and climbed to as high as 1.3987 on market report of M&A deal.  
  
Reuters reported sterling jumped after Japan's Takeda Pharmaceutical sweetened a 44 billion-pound ($61.4 billion) bid for London-listed drugmaker Shire ahead of a deadline on Wednesday.  
  
In other news, Reuters reported U.S. President Donald Trump on Tuesday said there was a good chance that the United States could reach a trade agreement with China and that his treasury secretary would head there for negotiations in a few days.   
  
Reuters reported U.S. President Donald Trump said on Tuesday that North Korean leader Kim Jong Un had been "very honorable" and wanted to meet with Trump as soon as possible. Trump also said a planned meeting with Kim could take place in late May or June.  
  
On the data front, the U.S. Conference Board's index of consumer confidence increased to 128.7, compared to a reading of 126.0 forecast by economists. The measure had decreased to 127.0 in the previous month.  
  
Data to be released on Wednesday:  
  
New Zealand market holiday, Australia market holiday, France consumer confidence, Swiss ZEW investor sentiment, and U.S. MBA mortgage application