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The greenback pared intra-day losses made in Asia and European morning and ended the day higher against majority of its peers on Friday, except versus Japanese yen due to safe-haven usd buying as U.S. stimulus package would be delayed together with drop in U.S. Treasury yields and stocks. Cable tanked to a 3-week low on increasing concern of a no-deal Brexit.
Versus the Japanese yen, dollar me renewed selling at 104.27 in Australia and fell to 103.93 in Asian morning on cross-buying in jpy as well as drop in U.S. Treasury yields before recovering to 104.15 at New York open due to broad-based rebound in the greenback but only to fall to session lows of 103.83 and later staged a recovery to 124.05 ahead of th close.
Although the single currency traded on the front foot in Asia and climbed to 1.2162, price met renewed selling at European open and fell in tandem with cable to 1.2111 due to recovery in usd before rebounding to 1.2132 in New York morning. The pair then fell again to session lows of 1.2106 and last traded at 1.2111 near the close.
Reuters reported the European Central Bank is targeting favourable financing conditions rather than pumping a given amount of liquidity into the economy with its latest stimulus decision, ECB policymaker Francois Villeroy de Galhau said on Friday. “We will do less if the financing conditions remain favourable like today. If the opposite is needed, we will do more,” he said.
The British pound went through yet another volatile session as Brexit trade deal deadline will be on Sunday. Although cable recovered to 1.3325 (Reuters) in Asia, renewed selling interest emerged and intra-day fall accelerated at European open and later tumbled to a 3-week low of 1.3135 at New York open due to increasing markets jitters of a no-deal Brexit before staging a strong rebound to 1.3255 on short covering.
Reuters reported European Commission President Ursula von der Leyen said on Friday the positions in trade talks with Britain remained apart, with ensuring a level playing field in the future and agreeing access to UK fishing waters for EU fleets the key sticking points. She said the two sides would decide on Sunday “whether we have conditions for an agreement, or not”.
Also, Ursula von der Leyen told the 27 national EU leaders meeting in Brussels on Friday a no-deal split in trading ties with Britain at the end of the year was now more likely than not, an official said.
In other news, Reuters reported British Prime Minister Boris Johnson said on Friday that it was very likely that trade talks would fail and that the United Kingdom would leave without a deal.
Data to be released trhis week :
Japan Tankan big manufacturing index, Tankan big non-manufacturing index, Tankan small manufacturing index, Tankan small non-manufacturing index, tertiary industry activity, industrial output, capacity utilization, UK Rightmove house price, China house prices, and EU industrial production on Monday.
New Zealand Westpac consumer survey, GDT price index, China industrial production, retail sales, UK Claimant count, ILO unemployment rate, employment change, average weekly earnings, Swiss producer and import price index, France CPI (EU norm), CPI, Italy CPI, CPI (EU norm), trade balance, Canada housing starts, manufacturing sales, and U.S. NY Fed manufacturing index, import prices, export prices, redbook, industrial production, capacity utilization, manufacturing output on Tuesday.
New Zealand current account, Australia manufacturing PMI, services PMI, Japan exports, imports, trade balance, Jibun Bank manufacturing PMI, UK core CPI, CPI, RPI, core RPI, PPI input prices, PPI output prices, PPI core output prices, Markit manufacturing PMI, Markit services PMI, DCLG house price index, France Markit manufacturing PMI, Markit services PMI, Germany Markit manufacturing PMI, Markit services PMI, Italy industrial orders, industrial sales, EU Markit manufacturing PMI, Markit services PMI, construction output, trade balance, labour costs, Canada CPI, wholesale trade, and U.S. MBA mortgage applications, retail sales ex-autos, retail sales, Markit manufacturing PMI, Markit services PMI, business inventories, NAHB housing market index, Federal Reserve interest rate decision on Wednesday.
New Zealand GDP, Australia employment change, unemployment rate, Swiss trade balance, imports, imports, SNB interest rate decision, France business climate, EU HICP, core HICP, UK BoE interest rate decision, BoE asset purchase program, BoE QE total, BoE QE corporate bond purchases, BoE MPC vote hike, BoE vote unchanged, BoE vote cut, U.S. building permits, housing starts, initial jobless claims, continued jobless claims, Philadelphia Federal manufacturing index, KC Fed manufacturing index, and Canada new house price index, ADP employment change on Thursday.
New Zealand imports, trade balance, exports, Japan nationwide core CPI, nationwide CPI, BoJ interest rate decision, UK GfK consumer confidence, retail sales, retail sales ex-fuel, CBI trends orders, Germany producer prices, wholesale price index, Ifo business climate, Ifo current conditions, Ifo expectations, EU current account, Italy producer prices, U.S. current account, leading index change, and Canada retail sales, retail sales ex-autos on Friday.