Dollar rises broadly as upbeat U.S. data trigger broad-based usd's short covering – FXStreet

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The greenback erased its intra-day losses made in Asia and European morning and rallied in New York to end the day marginally higher against majority of its peers on Tuesday as upbeat U.S. consumer confidence and Richmond Fed manufacturing index triggered active short covering in usd.  
  
Reuters reported U.S. consumer confidence unexpectedly rose in October as concerns about high inflation were offset by improving labor market prospects, suggesting economic growth picked up early in the fourth quarter.    The Conference Board said on Tuesday its consumer confidence index increased to a reading of 113.8 this month from 109.8 in September, ending three straight monthly declines. Economists polled by Reuters had forecast the index dipping to 108.3.    Later, U.S. released Richmond Fed manufacturing index where October reading which came in at 12, far higher than previous month’s figure of -3.  
  
Versus the Japanese yen, dollar traded with a firm bias in Asia and gained to 114.07 in early European morning. The pair continued to ratchet higher on active cross-selling in jpy and hit an intra-day high at +114.XX+ in New York morning before stabilising.  
  
The single currency remained under pressure in Asia and retreated to 1.1595 in early European morning. Despite rising to session highs at +1.1625+ ahead of New York open. However, the pair erased its gains and dropped to an intra-day low at +1.15XX+ in New York morning due partly to cross-selling of euro especially vs sterling.  
  
The British pound briefly retreated to 1.3758 in Asian morning, however, the pair then rallied to an intra-day high at 1.3829 ahead of New York open due partly to cross-buying of sterling especially vs euro. Later, cable then erased its gains and tumbled in New York on usd’s broad-based strength to +1.37XX+.  
  
Data to be released on Wednesday:  
  
New Zealand imports, trade balance, exports, NBNZ business outlook, NBNZ own activity, U.K. BRC shop price index, Australia CPI, Germany Gfk consumer sentiment, Frnace consumer confidence, producer prices, Italy trade balance non-EU, Swiss investor sentiment, U.S. MBA mortgage application, durable goods, durable ex-transport, durables ex-defense, goods trade balance, wholesale inventories, and Canada BOC interest rate decision.