Dollar rises broadly on mildly hawkish Fed minutes: Oct 13, 2016

Market Review - 12/10/2016  22:02GMT  

Dollar rises broadly on mildly hawkish Fed minutes

The greenback continued its recent winning streak and rose against majority of its peers on Wednesday on increased speculation of a Federal Reserve rate hike. 

Versus the Japanese yen, the greenback gained at Asian open to 103.66 and continued to traded with a firm bias. Dollar found renewed buying at 103.41 in European morning and rose to session high at 104.48 at New York midday. Price briefly retreated to 104.10 after Fed minutes. 

The single currency met renewed selling at 1.1070 ahead of Asian open and retreated to 1.1032 ahead of European open. Intra-day decline accelerated in Europe and price fell to 1.1010 in Europe, then 1-tick lower to 1.1005 in New York morning before stabilising.Euro briefly bounce to 1.1047 after release of Fed minutes but then quickly retreated and closed near the day's low.

Although the British pound surged in Australia to 1.2290 on cross-buying of sterling especially vs euro, then higher to session high at 1.2325 in Asian morning, price pared its gains and fell sharply to 1.2218 in early European morning. Cable continued to ratchet lower and dropped to 1.2166 in New York morning on renewed concerns over how UK would negotiate its Brexit terms. 

In other news, British Brexit Min Davis said 'gov't will make sure that the British vote on Brexit is respected; will not allow any party to have a veto on the decision to leave the EU; cannot tell negotiating partner what Britain's top priority is as it will become expensive; cannot give details on how we are going to run Britain's negotiation to leave the EU.' 

Data to be released on Thursday: 

New Zealand business NZ PMI, Australia consumer inflation expectation, China exports, imports, trade balance, Japan tertiary industry index, Germany CPI, Harmonised Index of Consumer Prices, wholesale price index, U.K. RICS housing price balance, U.S. initial jobless claims, import price index, export price index, Federal budget and Canada new housing price.