Dollar snaps losing streak and gains on risk-aversion

The greenback snapped its recent losing streak and edged higher against majority of its peers on Thursday except the safe-haven jpy and chf as lack of progress in Ukraine-Russia peace talks triggered risk-aversion.  
  
Reuters reported U.S. consumer spending slowed significantly in February, while price pressures continued to mount, with inflation posting its largest annual gain since the early 1980s.  
  
The Commerce Department said on Thursday that consumer spending, which accounts for more than two-thirds of U.S. economic activity, rose 0.2% last month. Data for January was revised higher to show outlays rebounding 2.7% instead of 2.1% as previously reported. Economists polled by Reuters had forecast consumer spending increasing 0.5%.  
  
More expensive gasoline, rents and food are forcing households to cut back spending elsewhere. Gasoline prices soared in February and broke above $4 per gallon this month following Russia's invasion of Ukraine on Feb. 24.  
  
Versus the Japanese yen, although dollar edged up to session highs at 122.45 at Asian open, price then fell to 121.35 in European morning due to broad-based buying in jpy. The pair then staged a short-covering rebound to 122.22 in Europe before tumbling again to a 6-day low at 121.29 in New York.  
  
The single currency briefly extended its recent ascent and hit a fresh 4-week high at 1.1184 in Asian morning, however, lack of follow-through buying triggered profit-taking and price tumbled to an intra-day low at 1.1061 in New York morning due partly to cross-selling of euro especially vs sterling.  
  
The British pound remained under pressure and retreated to 1.3110 in Asia before recovering to 1.3147 in early European morning. Despite falling briefly to an intra-day low at 1.3107 in New York morning, price rallied to session highs at 1.3176 on cross-buying in sterling.  
  
Data to be released on Friday:  

Australia AIG manufacturing index, manufacturing PMI, Japan Tankan small non-manufacturing PMI, Tankan small manufacturing index, Tankan big non-manufacturing PMI, Tankan big manufacturing index, China Caixin manufacturing PMI, Swiss CPI, manufacturing PMI, France budget balance, Markit manufacturing PMI, Italy Markit manufacturing PMI, Germany Markit manufacturing PMI, EU Markit manufacturing PMI, HICP, U.K. Markit manufacturing PMI, U.S. non-farm payrolls, private payrolls, unemployment rate, average earnings, Markit manufacturing PMI, ISM manufacturing PMI, construction spending and Canada Markit manufacturing PMI.