U.S. Dollar Falls As European Shares Traded Higher
November 06 2023 - 12:44AM
RTTF2
The U.S. dollar weakened against other major currencies in the
European session on Monday, as investors took stock of the latest
developments in the Middle East and looked ahead to a speech by Fed
Chair Jerome Powell later this week for more clarity on the
interest rate outlook.
Many Federal Reserve policymakers including Fed Chair Jerome
Powell, and officials from the BoE and ECB are due to speak this
week as investors await more clarity on the outlook for rates.
Powell will speak on Wednesday.
It is widely believed that the Fed may not hike interest rates
any further. Futures markets currently imply an 86 percent chance
the first policy easing would come as soon as June.
In the European trading now, the U.S. dollar fell to nearly a
2-month low of 1.0756 against the euro, more than a 1-1/2-month low
of 1.2424 against the pound and nearly a 2-week low of 0.8954
against the Swiss franc, from early highs of 1.0722, 1.2365 and
0.8998, respectively. If the greenback extends its downtrend, it is
likely to find support around 1.08 against the euro, 1.25 against
the pound and 0.87 against the franc.
The greenback edged down to 149.38 against the yen, from an
early high of 149.74. On the downside, 147.00 is seen as the next
support level for the greenback.
Against the Australia and the Canadian dollars, the greenback
dropped to more than a 2-month low of 0.6524 and nearly a 3-week
low of 1.3629 from early lows of 0.6504 and 1.3667, respectively.
The next possible downside target for the greenback is seen around
0.66 against the aussie and 1.34 against the loonie.
The greenback edged down to 0.6002 against the NZ dollar, from
an early high of 0.5984. On Friday, the greenback reached more than
a 3-week high of 0.6003. The greenback may test support near the
0.61 region.
Looking ahead, Canada Ivey's PMI for October and U.S. Loan
officer survey are set to be published in the New York sesion.
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