Dollar's bull run continues on rate hike expectation and rising U.S. Treasury yields: Nov 22, 2016

Market Review - 19/11/2016  02:57GMT  

Dollar's bull run continues on rate hike expectation and rising U.S. Treasury yields

The greenback gained to fresh multi-month highs against majority of its peers as expectations of a Federal Reserve rate hike in December continued to support the buck. 

Versus the Japanese yen, dollar rose to a fresh 5-1/2 month peak at 110.93 at European open before tumbling to an intra-day low at 109.80 ahead of New York open on profit-taking. However, renewed buying there lifted the pair and the greenback rebounded to 110.70 in New York morning, price later hit session highs of 111.95 at the close. 

The single currency resumed its recent losing streak and dropped to 1.0582 in Asian morning. However, euro pared its losses and staged a short-covering rebound to 1.0643 due in part to cross-buying vs sterling. Later, price met renewed selling there and fell to a fresh 11-1/2 month trough at 1.0570 in New York morning on dollar's broad-based strength, price later staged a minor recovery in New York afternoon on pre-weekend short covering. 

The British pound weakened to 1.2383 in European open before briefly rising to session high at 1.2437 in Europe. However, cable pared its gains and tumbled to a 2-week low of 1.2303 in New York morning on active cross-selling of sterling especially vs euro, price later stage d short-covering recovery in tandem with eur/usd to 1.2367. 

In other news, Fed's Kaplan said 'Fed at point where ready to remove some accommodative in near future; fiscal policies help improve growth, will give Fed more leeway in 2017; Fed making good progress on dual mandate; will be assessing Trump's proposals, some cud be helpful but others hurtful; doesn't see a recession coming.' 

On the data front, the Conference Board Inc. said that U.S. CB Leading Index rose to a seasonally adjusted annual rate of 0.1%, from 0.2% in the preceding month. Analysts had expected U.S. CB Leading Index to rise 0.1% last month. 

Data to be released on Monday: 

Japan imports, exports, trade balance, U.S. Chicago Fed activity and Canada wholesale sales.