Dollar Weakens On Fed Rate Cut Bets
June 24 2019 - 5:03AM
RTTF2
The U.S. dollar fell against its major counterparts in the
European session on Monday, as investors focused on the likelihood
of the Fed's interest rate cut amid uncertain global economic
outlook.
Following the Fed's dovish tilt last week, market participants
are pricing in a rate cut sooner rather than later.
Fed Chairman Jerome Powell is scheduled to speak at the Council
on Foreign Relations in New York on Tuesday, when he will outline
about the economic outlook and monetary policy.
The G20 event, which begins on Friday in Osaka, will feature
meeting between Trump and Xi to discuss trade-related issues.
Although it's unlikely to strike a trade deal at the summit,
investors keenly await whether there will be an agreement to resume
trade negotiations.
The currency traded mixed against its major counterparts in the
Asian session. While it rose against the franc and the yen, it
dropped against the euro and the pound.
The greenback declined to 0.9744 against the franc, its weakest
since January 10. The greenback is poised to challenge support
around the 0.95 mark.
The greenback edged down to 107.25 against the yen, from a high
of 107.48 hit at 1:45 am ET. The greenback is likely to find
support around the 105.00 area.
Final data from the Cabinet Office showed that Japan's leading
index improved in April.
The leading index, which measures the future economic activity
rose to 95.9 in April from 95.7 in March. The flash estimate was
95.5.
The U.S. currency that closed last week's trading at 1.1369
against the euro depreciated to more than a 3-month low of 1.1399.
The next possible support for the greenback is seen around the 1.16
area.
Survey data from the Munich-based Ifo Institute showed that
Germany's business sentiment weakened in June.
The Ifo business confidence index dropped to 97.4 in June from
97.9 in May. The score was forecast to fall to 97.5.
The greenback was trading lower at 1.2752 against the pound, not
far from near a 5-week low of 1.2766 touched at 2:15 am ET. Next
key support for the greenback is likely seen around the 1.30
level.
Reversing from a high of 1.3216 hit at 6:00 pm ET, the geenback
ticked down to 1.3178 against the loonie. If the greenback
continues its fall, 1.30 is possibly seen as its next support
level.
On the flip side, the greenback held steady against the aussie,
after having rebounded from near a 2-week low of 0.6961 reached at
10:45 pm ET. The pair was valued at 0.6924 when it ended deals on
Friday.
Following a fall to a 2-week low of 0.6615 against the kiwi at
2:30 am ET, the greenback held steady in subsequent deals. At last
week's close, the pair was worth 0.6585.
Figures from Reserve Bank of New Zealand showed that New
Zealand's credit card spending growth slowed in May after rising in
the previous month.
Credit card spending growth eased to 0.4 percent month-on-month
in May from 0.6 percent in April.
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