U.S. Dollar Showing Weakness Against Majors
May 19 2022 - 3:06AM
RTTF2
The U.S. dollar weakened against its major rivals in the
European session on Thursday on hopes that its recent rally was
overdone.
U.S. treasury yields fell, with the benchmark 10-year yield
touching 2.84 percent.
Investors fear that the central banks' attempts to fight
inflation by steep monetary tightening is likely to slow global
growth.
Overnight data showing a fall in U.S. housing starts and
building permits for April added to worries about a slowdown in the
economy.
Earnings reports from retailers showed that high inflation were
hurting corporate profits, with Target reporting bleak
first-quarter results due to higher fuel and freight costs.
On the economic front, U.S. weekly jobless claims for the week
ended May 14 and existing home sales for April are due out later
today.
The greenback dropped to a 1-week low of 127.73 against the yen
and a 2-week low of 0.9749 against the franc, down from its
previous highs of 128.94 and 0.9885, respectively. The greenback is
seen finding support around 121.00 against the yen and 0.95 against
the franc.
The greenback reached as low as 1.2407 against the pound,
following a high of 1.2334 hit at 5 pm ET. Against the euro, it
edged down to 1.0509. The next possible support for the greenback
is seen around 1.27 against the pound and 1.08 against the
euro.
The greenback was trading lower against the loonie and the kiwi
and were quoted at 1.2820 and 0.6353, respectively. On the
downside, 1.26 and 0.65 are possibly seen as the next support
levels for the greenback against the loonie and the kiwi,
respectively.
In contrast, the greenback held steady against the aussie, after
recovering to 0.6958 from the Asian session's low of 0.7024. The
pair traded at 0.6953 at yesterday's close.
Looking ahead, the European Central Bank publishes the account
of the monetary policy meeting of the Governing Council held on
April 13-14 at 7:30 am ET.
U.S. weekly jobless claims for the week ended May 14 and
existing home sales for April, as well as Canada new housing price
index, industrial product and raw materials price indexes, all for
the same month, are due out in the New York session.
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