FOREX-Dollar rebounds vs yen, bitcoin surges above $14,000


Warning: This material has been prepared by a third party company, Reuters, which is independent of Davy. Davy has not reviewed the material and accepts no responsibility for errors or omissions, or for the information or opinions contained therein. It does not constitute investment advice.

* Dollar/yen sheds losses as equities rebound * Underlying optimism on US tax reform supports dollar * Bitcoin tops record $14,000 * Canadian dollar nurses wounds after dovish-sounding BoC * Graphic: World FX rates in 2017 By Jemima Kelly LONDON, Dec 7 (Reuters) - The dollar recovered some ground against the yen on Thursday, as global markets regained some appetite for risk, and on optimism that the United States will successfully push through a tax reform programme. The greenback had slipped against the safe-haven Japanese currency on Wednesday after U.S. President Donald Trump said he would recognise Jerusalem as the capital of Israel -- a move that imperiled Middle East peace efforts and provoked widespread condemnation.*:nL8N1O66E1 But as global stock prices rebounded on Thursday, investors bought back into the U.S. currency, which was trading up 0.3 percent on the day at 112.60 yen JPY= . Against a basket of six major currencies, the dollar hit a two-week high .DXY . U.S. Senate Republicans agreed to talks with the House of Representatives on sweeping tax legislation on Wednesday, amid early signs that lawmakers could bridge their differences and agree on a final bill ahead of a self-imposed Dec. 22 deadline.*:nL1N1O61VT "The dollar is fighting back a little bit but there's still some caution, as it could still be a few weeks until we know the oucome of the tax reform bill," said Rabobank currency strategist Jane Foley, in London. "The yen will be sensitive if geopolitical tensions rise again, and I think there's an inevitability to that, so I don't think there's going to be too much updside for dollar/yen in this environment," she added. Upbeat U.S. private-sector employment data released on Wednesday also provided some support to the dollar. But strategists said the currency would trade in narrow ranges until the release of the closely watched non-farm payrolls report on Friday. The move higher in dollar/yen came amid a surge in Tokyo shares, which had slumped the previous day on Middle East concerns. But considering the Nikkei's .N225 gains - the index was up almost 1.5 percent - the dollar's rise versus the yen appeared limited, some observers noted. "The decoupling that has begun taking place between equities and currencies is one of the key market themes of 2017," said Daisuke Karakama, chief market economist at Mizuho Bank. The euro inched down a touch to $1.1792 EUR= after hitting a two-week low of $1.1780 on Wednesday. Bitcoin soared to a record high of more than $14,500, up almost 7 percent on the day and continuing a staggering surge from less than $1,000 at the beginning of the year. The Canadian dollar added to losses suffered on Wednesday after the Bank of Canada held interest rates steady and showed enough caution to dampen expectations for a hike early next year. CAD/ The loonie was 0.3 percent down on the day at a six-day low of C$1.2835 per U.S. dollar CAD=D4 . (Reporting by Jemima Kelly; Editing by Angus MacSwan) ((; +44)(0)(20 7542 7508; Reuters Messaging: Keywords: GLOBAL FOREX/

Warning: This content may be provided by regulated and unregulated entities and is not created, reviewed or endorsed by Davy. It is provided for general information purposes only and does not constitute a recommendation or solicitation to purchase or sell any security or make any other type of investment or investment decision. Importantly, it does not constitute investment advice, as it does not contemplate the personal circumstances of any particular person or group of persons. Neither Davy nor the providers of the Third Party Content will be liable for any investment decision made based on the reliance on or use of such data, or any liability that may arise due to delays or interruptions in the delivery of the Third Party Content for any reason.