Dollar falls broadly on continued U.S.-China tensions

Market Review - 27/07/2020 23:47GMT  

Dollar falls broadly on continued U.S.-China tensions

The greenback extended its recent losing streak and fell to a near 2-year low due to continued U.S.-China tensions as well as ongoing fear over coronavirus pandemic as infections in the United States showed no sign of easing, adding doubts over the country's economic recovery.  
  
Versus the Japanese yen, dollar met renewed selling at 106.18 (Reuters) in New Zealand and fell to 105.39 at European open on active safe-haven jpy buying due to continued concern over U.S.-China tensions as well as increase in coronavirus infections in the United States. The pair then ratcheted lower to a 4-month low at 105.12 in New York morning before rebounding to 105.45 on short-covering.  
  
The single currency found renewed buying at 1.1637 and intra-day rise accelerated at Asian open and price rallied to 1.1725 on usd's broad-based weakness before retreating to 1.1683 in Europe on profit-taking. However, the pair then rose to a fresh 22-month high at 1.1781 in New York and then weakened to 1.1743 on rebound in the greenback and traded at 1.1751 near the close.  
  
The British pound also went through a volatile session. Cable extended its recent winning streak and rose from 1.2782 in New Zealand to 1.2858 in Asia on usd's weakness before retreating to 1.2808 in European morning. However, price then rallied in tandem with euro to a 4-1/2 month high at 1.2904 (Reuters) on and then weakened to 1.2868 on short-covering in the greenback.  
  
In other news, Reuters reported the European Union's Brexit negotiator Michel Barnier expressed confidence at a closed-door meeting with national envoys to the bloc that a new deal with Britain was possible, diplomatic sources told Reuters.   
  
Data to be released on Tuesday :  
  
UK CBI distributive trades, and U.S. redbook, CaseShiller home price, consumer confidence, Richmond Fed manufacturing index.