Market Review - 11/09/2017 22:33GMT
Dollar rises broadly on return of risk appetite after N. Korea did not launch missile test
The greenback climbed broadly yesterday on improved risk appetite after North Korea did not conduct a nuclear test over the weekend as feared and as hurricane Irma has weakened to a tropical storm.
Versus the Japanese yen, dollar opened higher in New Zealand and gained to 108.62 at European open. Price found renewed buying at 108.37 in European morning and later rose to session highs of 109.50 in New York afternoon due the greenback's broad-based strength as well as rising U.S. Treasury yields.
The single currency opened lower on dollar's strength and remained on the back foot in Asia, price slipped to 1.1994 in early European morning before staging a short-covering rebound 1.2029. The pair later resumed intra-day decline and hit session lows of 1.1948 near New York close.
Although the British pound also opened lower in New Zealand and weakened to session low at 1.3168 ahead of European open, price pared its losses and gained to session high at 1.3222 in Europe on cross-buying of sterling especially vs euro. However, renewed selling support below Friday's high at 1.3224 triggered profit-taking and cable later fell to session lows of to 1.3161 in New York afternoon due to broad-based usd's strength.
In other news, UK PM May's spokesman said 'government is confident of passing EU withdrawal bill at vote in Parliament later; pay review process is continuing as planned, when asked whether public sector pay cap still in place.'
Data to be released on Tuesday:
Australia NAB business conditions, NAB business confidence, Frank nonfarm payrolls, U.K. DCLG house price index, CPI, RPI, PPI input, PPI output, and U.S. redbook, JOLTS job openings.
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