Dollar rises on broad-based buying, yen gains on renewed US-China trade deal uncertainty

Market Review - 09/11/2019 03:42GMT  

Dollar rises on broad-based buying, yen gains on renewed US-China trade deal uncertainty

The greenback continued this week's winning streak and ended broadly higher against majority of its peers on Friday, except for the safe-haven Japanese yen on conflicting U.S.-China trade negotiation after U.S. President Donald Trump said he did not agreed to roll back tariffs on China.  
  
Reuters reported President Donald Trump on Friday told reporters he has not agreed to roll back tariffs on China but that Beijing would like him to do so.   
Officials from both countries on Thursday said China and the United States have agreed to roll back tariffs on each others' goods in a "phase one" trade deal if it is completed. Before leaving the White House Trump told reporters he would like to sign the deal in the United States.   
  
Versus the Japanese yen, although dollar initially rebounded to 109.40 at Asian open, price weakened to 109.16. However, renewed buying emerged and the pair rose to session highs at 109.47 at New York open on rising U.S. Treasury yields and then fell to intra-day low at 109.09 after U.S. President Donald Trump's negative U.S.-China trade comments.  
  
Although the single currency moved sideways in Asia, price met renewed selling at 1.1055 in European morning and dropped to 1.1027, and then to a fresh 3-week bottom at 1.1017 in New York on active selling in eur/jpy cross, price last traded at 1.1017 near the close.  
  
The British pound remained under pressure in Asia and fell to 1.2805 in European morning. Despite staging a recovery to 1.2822, cable fell in tandem with euro and later hit a 3-week low of 1.2769 in New York on usd's strength as well as as continued uncertainty over upcoming U.K. election.   
  
In other news, Reuters reported Scottish nationalists said on Friday they would support 'progressive politics' if the election threw up a hung parliament and refused to rule out propping up Labour to get another independence referendum.   When asked if the Scottish National Party would support Labour to allow Jeremy Corbyn to form a government, the SNP's Westminster leader Ian Blackford told ITV: "We simply don't want Boris Johnson to be prime minister."     

"We will support progressive politics," Blackford said. "But the simple fact is: anybody, Jeremy (Corbyn), Boris (Johnson) or anybody else must respect Scotland and must respect the votes of the Scottish people in demanding we have the right to determine our future."   He said there would be no formal coalition with any other party but repeatedly sidestepped a question on whether the party would prop up a Labour government.   
  
Data to be released this week :  
  
New Zealand retail sales, Japan current account, machinery orders, trade balance, Eco watchers current, Eco watchers outlook, UK NIESR GDP estimate, GDP, Rightmove house price, GDP, industrial output, manufacturing output, construction output, goods trade balance, Italy industrial output, U.S. market holiday and Canada market holiday on Monday.  
  
Australia NAB business conditions, Japan machine tool order, UK DCLG house price index, claimant count, ILO unemployment, employment change, average weekly earning, Germany ZEW economic sentiment, ZEW current conditions, EU ZEW current conditions and U.S. NFIB business optimism. redbook on Tuesday.  
  
New Zealand food price index, RBNZ rate decision, Australia consumer sentiment, wage price index, Japan corp goods price, Germany CPI, HICP. UK core CPI, CPI, RPI, PPI input prices, PPI output prices, PPI core output prices, EU industrial production and U.S. MBA mortgage application, core CPI, CPI, real weekly earning on Wednesday.  
  
Japan GDP deflator, GDP, Australia employment, unemployment rate, China industrial output, retail sales, France ILO unemployment, CPI (EU-norm), CPI, UK RICS housing price balance, retail sales, retail sales ex-fuel, Germany GDP, Swiss production price, EU employment, GDP, U.S. initial jobless claims, PPI, PPI core and Canada new housing price on Thursday.  
  
China house price index, Japan industrial output, capacity utilization, Italy trade balance, CPI, EU HICP, core CPI, trade balance and U.S. New York Fed manufacturing, import prices, export prices, retail sales ex-autos, retail sales, industrial production, capacity utilization, manufacturing output, industrial production on Friday.