Dollar pares losses on profit taking in New York after Friday's downbeat U.S. data: Jul 18, 2017

Market Review - 17/07/2017  23:20GMT  

Dollar pares losses on profit taking in New York after Friday's downbeat U.S. data

The greenback continued its recent losing streak and dropped against majority of its peers, with the exception of the yen, as last week's poor U.S. economic data continued to weigh on the currency. However, profit taking in New York session lifted dollar broadly. 

Versus the Japanese yen, dollar traded in a narrow range in Asia and briefly edged up to 112.77 at European open. However, price met renewed selling there and dropped to an intra-day low at 112.33 in New York morning due to the greenback's broad-based weakness. Later, the pair pared its losses and rose to session high at 112.87 in New York morning and later traded broadly sideways for rest of the session 

Although the single currency edged lower in Asia and dropped to session low at 1.1435 in early European morning, price pared its losses and rose to an intra-day high at 1.1487 in New York morning on dollar's weakness together with cross-buying of euro especially vs sterling. Price later retreated briefly to 1.1473 before edging higher near the close. 

The British pound remained under pressure in Asia and dropped to an intra-day low at 1.3055 in New York morning due partly to cross-selling of sterling especially vs euro as Brexit talk officially commenced and price later hit session lows of 1.3048 on further profit taking as investors unwound long sterling position ahead of Tuesday's key U.K. inflation data. 

In other news, British Brexit Min Davis said 'we now getting into the substance of the matter; it's time to get down to work n make this a successful negotiation.' 

On the data front, Eurostat said consumer prices in the 19 countries sharing the euro rose 1.3 percent year-on-year in June, in line with market expectations, decelerating form 1.4 percent in May and 1.9 percent in April. 

Data to be released on Tuesday: 

New Zealand CPI, China House Price Index, UK RPI, CPI, PPI input, PPI output, DCLG house price, U.S. export price, import price, redbook and NAHB housing market.