U.S. Dollar Erases Losses Against Majors
November 29 2023 - 6:19AM
RTTF2
The U.S. dollar rose against its most major counterparts in the
European session on Wednesday, after falling in the previous
session on the back of dovish remarks from Fed Governor Christopher
Waller.
Speaking at an American Enterprise Institute event on Tuesday,
Waller said he is "increasingly confident that policy is currently
well positioned to slow the economy and get inflation back to 2
percent."
Waller hinted at the possibility of lowering the policy rate in
the future, if inflation continues to decline steadily.
Waller's comments fueled hopes that the Fed will cut rates in
the first half of next year, with money markets now pricing in a 40
percent chance of a 25 basis point cut in March.
On the U.S. economic front, revised data released by the
Commerce Department showed the U.S. economy grew faster than
previously estimated in the third quarter of 2023.
The Commerce Department said the jump by real gross domestic
product in the third quarter was upwardly revised to 5.2 percent
from the previously reported 4.9 percent. Economists had expected
the pace of growth to be upwardly revised to 5.0 percent.
The greenback advanced to 1.0961 against the euro, 147.90
against the yen and 1.2673 against the pound, from an early
3-1/2-month low of 1.1017, 2-1/2-month low of 146.67 and nearly a
3-month low of 1.2733, respectively. The next possible resistance
for the greenback is seen around 1.06 against the euro, 153.00
against the yen and 1.23 against the pound.
The greenback recovered to 1.3603 against the loonie, 0.6608
against the aussie and 0.6142 against the kiwi, reversing from an
early 2-month low of 1.3541 and nearly 4-month lows of 0.6676 and
0.6208, respectively. The greenback is seen finding resistance
around 1.40 against the loonie, 0.63 against the aussie and 0.59
against the kiwi.
In contrast, the greenback weakened to a 3-1/2-month low of
0.8744 against the franc. Next near term support for the currency
is seen around the 0.86 level.
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