U.S. Dollar Drops Against Most Majors
May 14 2018 - 6:04AM
RTTF2
The U.S. dollar drifted lower against its most major opponents
in the European session on Monday, amid profit taking, as well as
on receding hopes for aggressive rate hikes by the Federal Reserve
this year.
The currency was also weighed by comments from St. Louis Federal
Reserve President James Bullard, who said aggressive rate increases
could threaten U.S. business investment.
Last week, Bullard cautioned against raising rates further as he
believes that rates have reached a 'neutral' level and further
hikes would give little economic benefit.
The day's economic calendar remains light, with investors
focused on US-China negotiations that begins today.
Investors await reports on retail sales, homebuilder confidence,
housing starts, and industrial production due this week for more
direction.
The currency traded mixed against its major rivals in the Asian
session. While it fell against the euro and the pound, it held
steady against the franc. Against the yen, it rose.
The greenback weakened to 0.9958 against the franc, marking an
11-day low. The greenback is likely to find support around the 0.98
level.
The greenback slipped to a 4-day low of 1.3602 against the pound
and held steady thereafter. On the downside, 1.38 is likely seen as
the next support for the greenback.
The greenback declined to a 10-day low of 1.1996 against the
euro, off an early high of 1.1937. If the greenback continues its
fall, 1.21 is possibly seen as its next support level.
The greenback pared gains to 1.2753 against the loonie, from a
high of 1.2794 hit at 5:30 pm ET. The next possible support for the
greenback is seen around the 1.26 level.
On the flip side, the greenback climbed to a 4-day high of
109.60 against the yen and held steady thereafter. At last week's
close, the pair was worth 109.36.
Data from the Bank of Japan showed that Japan's producer prices
rose 0.1 percent on month in April - in line with expectations
following the 0.1 percent decline in March.
On a yearly basis, producer prices climbed 2.0 percent - again
matching estimates following the 2.1 percent gain in the previous
month.
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