Dollar pares losses in NY on selloff in US stocks

Although the greenback fell to 2-1/2 year low, dollar pared intra-day losses and rebounded in New York on active safe-haven usd buying due to selloff in U.S. equities on concern over rise in coronavirus infections globally. (All three indices ended the day down by more than 1.25%)  
  
On the data front, Reuters reported the U.S. Commerce Department said on Monday that construction spending increased 0.9% in November. Data for October was revised higher to show construction outlays accelerating 1.6% instead of 1.3% as previously reported. 
Economists polled by Reuters had forecast construction spending would rise 1.0% in November. Construction spending increased 3.8% on a year-on-year basis in November.   
  
Versus the Japanese yen, although dollar rebounded from 103.05 in New Zealand to 103.31 ahead of Asian open, price met renewed selling there and then fell below previous December's 102.88 low to a near 10-month bottom of 102.72 in Europe due to usd's broad-based weakness as well as weakness in U.S. Treasury yields. However, the pair then staged a strong recovery to 103.25 in New York on active safe-haven usd buying due to selloff in U.S. stocks.  
  
The single currency found renewed buying at 1.2225 (Reuters) in New Zealand and rose to 1.2259 in Asian morning. Intra-day gain then accelerated at European open and price re-tested last Wednesday's 2-1/2 year high of 1.2309 in New York morning but only to weaken to 1.2242 in late New York on safe-haven usd buying on selloff in U.S. equities.  
  
Reuters reported the European Central Bank should explore the option of moving to yield curve control to raise inflation as such a policy could even reduce the volume of bond purchases, ECB Governing Council member Pablo Hernandez de Cos said.   
  
Although the British pound retreated to 1.3645 in New Zealand, renewed buying interest emerged and cable rose above last Thursday's 1.3686 high to a fresh 2-1/2 year peak of 1.3703 at European open on usd's weakness before retreating to 1.3665 on cross-selling in sterling. However, the pair then erased intra-day gains and tumbled to session lows of 1.3542 in New York on cross-selling in sterling as well as safe-haven usd buying.  
  
In other news, Reuters reported British Prime Minister Boris Johnson is set to announce later on Monday a new coronavirus lockdown for all of England similar to the one imposed when the pandemic hit the country in March, the BBC reported.   The measures would include school closures for most pupils and people would be asked to work from home unless they are unable to do their jobs remotely or are key workers, the BBC said, adding the measures would come into effect from midnight.   

Data to be released on Tuesday 

Australia ANZ job advertisements, Italy market holiday, Germany retail sales, unemployment change, unemployment rate, Swiss CPI, New Zealand GDT price index, Canada producer prices, and U.S. redbook, ISM New York index, ISM manufacturing PMI.