Dollar rises on safe-haven buying before paring gains on rebound in US stocks

The greenback came under selling in Asia and European morning on profit taking Friday but then gained broadly in New York morning due to safe-haven usd buying on political uncertainty ahead of U.S. presidential elections as well as continued fear on rise in coronavirus infections. However, dollar pared intra-day gains and retreated as U.S. stock rebounded in New York afternoon trading.  
  
On data front, Reuters reported orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, rose 1.8% last month, the Commerce Department said on Friday. Data for July was revised up to show these so-called core capital goods orders increasing 2.5% instead of 1.9% as previously estimated. Economists polled by Reuters had forecast core capital goods orders gaining 0.5% in August.   
  
Versus the Japanese yen, although dollar briefly rose to 105.54 at Asian open, price met renewed selling and fell to +session lows of 105.25+ at European open. However, the pair erased intra-day losses and later rose to a 9-day high at 105.69 in New York on active safe-haven usd buying before retreating due to profit-taking.  
  
Although the single currency rebounded from 1.1663 in Asian morning to 1.1684 in European morning, renewed selling emerged and knocked price down to a fresh 8-week low at 1.1613 in New York on safe-haven usd buying before recovering to 1.1635.  
  
While the British pound moved sideways in Asia and briefly rose to 1.2805 in European morning, price then fell to 1.2695 on usd's strength before staging a strong rebound to 1.2751 at New York open but only to drop in tandem with euro to session lows of 1.2688. The pair later recovered to 1.2750 on short covering.  
  
Reuters reported Britain on Friday said there was still a lot of work to do in talks with the European Union on a trade deal and called on the EU to translate a "more constructive attitude" into realistic policy positions.   
  
Data to be released this week :  
  
Japan leading indicator, coincident index and U.S. Dallas Fed manufacturing index on Monday.  

Japan Tokyo core CPI, Tokyo CPI, France consumer confidence, Italy producer prices, EU business climate, economic sentiment, industrial sentiment, services sentiment, consumer confidence, Germany CPI, HICP and U.S. goods trade balance, wholesale inventories, redbook, CS home price, consumer confidence on Tuesday.  
  
Japan industrial output, retail sales, construction orders, housing starts, New Zealand NBNZ business outlook, NBNZ own activity, China NBS non-manufacturing PMI, Caixin manufacturing PMI, manufacturing PMI, Australia building approval, Germany import prices, retail sales, UK GDP, current account, Nationwide house, France consumer spending, CPI (EU norm), CPI, producer prices, Swiss KOF indicator, investment sentiment, Germany unemployment change, unemployment rate, Italy consumer price, CPI (EU norm), EU HICP core HICP, U.S. MBA mortgage application, ADP employment, GDP, core PCE, PCE price index, GDP Deflator, Chicago PMI, pending home sales and Canada GDP, producer prices on Wednesday.  
  
China market holiday, Australia AIG manufacturing, Japan Tankan big manufacturing, Tankan big non-manufacturing, Tankan small manufacturing, Tankan small non-manufacturing, Jibun Bank manufacturing PMI, Swiss CPI, retail sales, manufacturing PMI, Italy unemployment rate, Markit manufacturing PMI, France Markit manufacturing PMI, Germany Markit manufacturing PMI, EU Markit manufacturing PMI, producer prices, unemployment, Canada Markit manufacturing PMI and U.S. personal income, core PCE price, initial jobless claims, continued jobless claims, Markit manufacturing PMI, construction spending, ISM manufacturing on Thursday.  
  
Japan unemployment rate, consumer confidence, Australia retail sales, France budget balance and U.S. non-farm payrolls, private payrolls, unemployment rate, average earnings, ISM New York index, durables ex-deference, durable goods, factory orders, durables ex-transport, University of Michigan sentiment on Friday.