Dollar pares gains in New York on falling US Treasury yields

Although the greenback gained in Asia and European morning on safe-haven usd buying due to concern over new coronavirus outbreak, dollar later pared intra-day gains in New York due to fall in U.S. Treasury yields as well as rise in U.S. equities but still ended Tuesday higher against majority of its peers except versus jpy.

Versus the Japanese yen, dollar briefly dipped to 110.46 in Asian morning before rising to 110.75 in European morning. However, price erased intra-day gains and later fell to session lows of 110.44 in New York due to weakness in U.S. Treasury yields together with rise in U.S. stocks.

Although the single currency met renewed selling at 1.1931 (Reuters) in Australia and later tumbled to session lows of 1.1879 in New York morning, the pair then staged a strong rebound to 1.1911 on renewed usd's weakness due to return of risk appetite on rise in U.S. equities.

The British pound extended its recent decline and fell from 1.3887 in Australia to 1.3859 in Asian morning. Price then tumbled to a 1-week low of 1.3814 shortly after New York open on usd's strength and cross-selling in sterling before recovering to 1.3853 and then moved sideways.

Data to be released on Wednesday:

U.K. BRC shop price index, Japan industrial output, China NBS non-manufacturing PMI, NBS manufacturing PMI, New Zealand NBNZ business outlook, NBNZ own activity, Japan consumer confidence, construction orders, housing starts, Germany import prices, U.K. GDP, current account, nationwide house price, France consumer spending, CPI, producer prices, Swiss KOF indicator, investor sentiment, Germany unemployment change, unemployment rate, Italy producer prices, CPI, EU HICP, U.S. MBA mortgage app, ADP employment change, Chicago PMI, pending home sales and Canada GDP, producer prices.