Dollar ends unchanged in holiday-thin North American trading

Market Review - 04/07/2020  02:15 GMT  

Dollar ends unchanged in holiday-thin North American trading

The greenback moved relatively narrowly on Friday as U.S. markets were closed for July 4th Independence Day holiday, price maintained a steady to firm undertone as rise in coronavirus cases in the U.S. dampened risk sentiment .  
  
Versus the yen, price moved very narrowly in directionless Asian morning and European session , however, the safe-haven yen gained versus euro and sterling. Price opened at 107.49 and inched higher to 107.56 and later retreated to 107.46, price last traded at 107.50 near North American close.  
  
The single currency also moved narrowly in subdued Asian morning following decline from 1.1302 to 1.1224 on Thursday, price edged higher to 1.1249 in Asia but only to hit session lows of 1.1220 in Europe. Price later climbed back to 1.1253 in holiday-thin North American trading.  
  
Bloomberg reported policymakers at the ECB are facing a potential rift over how much their PEPP stimulus should stay weighted towards weaker countries such as Italy, one of the worst-hit countries in the region from the pandemic.  
  
Citing sources familiar with conversations with ECB officials, this could be the first major disagreement among policymakers that could threaten to undermine the PEPP stimulus in the coming months/quarters.  
  
The British pound swung the most against the usd among the G4 counterparts. Although price moved narrowly in Asia after retreating from Thursday's post-NFP New York high of 1.2530 to 1.2457, cable briefly climbed to 1.2485 in early European trading due to cross-buying in sterling but quickly tumbled to 1.2439 on media report Germany's Merkel said "we are preparing on every level for a no-deal Brexit". Price later traded sideways and climbed to session highs of 1.2495 at the close.  
  
Reuters reported there is a good agreement to be reached with the European Union on post-Brexit trading terms but if that can't be achieved, there are other very good options, Prime Minister Boris Johnson told LBC radio on Friday.  
  
  
Johnson said he was a bit more optimistic than EU negotiator Michel Barnier, but that if no deal was struck in then an "Australia-style" arrangement would be a "very good option".  
  
Economic data to be released this week :  
  
Australia ANZ job advertisements, Germany industrial orders, UK Markit construction PMI, EU Sentix index, retail sales and U.S. Markit services PMI, ISM non-manufacturing PMI on Monday.  
  
New Zealand NZIER confidence, GDT price index, Australia AIG service index, RBA interest rate decision, Japan all household spending, coincident index, leading indicator, Germany industrial output, industrial production, France current account, trade balance, imports, exports, UK Halifax house prices, Italy retail sales, U.S. Redbook, JOLTS job openings and Canada Ivey PMI on Tuesday.  
  
Japan current account, trade balance, Swiss unemployment rate, U.S. MBA mortgage application and Canada house starts annualized on Wednesday.  
  
UK RICS housing price balance, Japan machinery orders, China PPI, CPI, Germany exports, imports, trade balance, current account and U.S. initial jobless claims, wholesale inventories, wholesale sales on Thursday.  
  
New Zealand retail sales, Japan corp goods price, France industrial output, Italy industrial output, U.S, PPI, core PPI and Canada employment change, unemployment rate on Friday.