Market Review - 15/03/2019 00:11GMT
Dollar rebounds after recent losses on short-covering
The greenback snapped its recent losing streak and ended higher across the board on Thursday due to short-covering and rising U.S. Treasury yields. Sterling gave up some of the gains it made this week on profit-taking as UK lawmakers voted overwhelmingly to seek a delay to the UK's exit from the EU.
Versus the Japanese yen, dollar found renewed buying at 111.14 at Asian open and rallied to 111.63 ahead of European open on cross-selling in jpy, then to 111.73 on usd's strength in Europe before retreating to 111.52 in New York on a reported which stated U.S. and China to push back Trump-Xi meeting until April together with and falling U.S. Treasury yields. However, price erased its losses and rose to session highs at 111.83 at New York midday before stabilising.
The single currency initially gained to a 1-week high at 1.1341 (Reuters) in Australia before renewed selling knocked price down to 1.1312 at European open. Despite rebounding to 1.1336 in European morning, euro fell again in tandem with sterling to session lows of 1.1294 in New York morning before recovering.
The British pound remained volatile as the Brexit deadline approaches. Cable initially fell to 1.3240 on profit-taking after Wednesday's 2% rally and then rose to 1.3331 in European morning after media reported that DUP was considering to support the government's deal. However, price met renewed selling there and dropped to an intra-day low of 1.3208 in Europe and then rebounded to 1.3289 at New York open before easing to 1.3224. The pair briefly rebounded to 1.3287 in New York afternoon after UK Parliament voted to seek an extension on the Brexit deadline before retreating to 1.3212.
Reuters reported the British parliament voted on Thursday to seek a delay to Brexit.
Lawmakers approved by 412 to 202 a motion setting out the option to have a short delay by agreeing to a Brexit deal by March 20 or a longer delay if no deal can be agreed in time.
In other news, Reuters reported agreeing a short delay to Brexit without an agreement would increase the risk of leaving the European Union without a deal, cabinet office minister David Lidington said on Thursday.
Reuters reported Ireland's Foreign Minister Simon Coveney said on Thursday the European Union may offer Britain to delay its exit from the bloc by up to 21 months in what may lead to a "fundamental rethink" of British policy on the matter.
On the data front, sales of U.S. single-family homes fell 6.9% to a seasonally adjusted annual rate of 607,000 units last month from a revised increase of 652,000 units in December, the Commerce Department said on Thursday. The data was delayed by two weeks due to the government shutdown at the start of the year. Economists had forecast new home sales hitting a pace 620,000 units last month.
Data to be released on Friday :
New Zealand manufacturing PMI, China house prices, Japan BoJ interest rate decision, Germany wholesale price index, Italy industrial orders, industrial sales, CPI, EU HICP, Canada manufacturing sales, and U.S. NY Fed manufacturing index, industrial production, capacity utilization, manufacturing output, JOLTS job openings, University of Michigan sentiment.
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