U.S. Dollar Declines Against Majors
April 12 2017 - 2:13AM
RTTF2
The U.S. dollar fell against its major counterparts in the early
European session on Wednesday, in the wake of growing concerns over
a conflict in Syria as well as a U.S. strike against North
Korea.
Geopolitical worries mounted after North Korea threatened to
launch a nuclear attack on the U.S., if the Navy strike group that
headed toward the Korean peninsula invades North Korea.
U.S. President Donald Trump wrote on Twitter that he explained
to China last week that a trade deal with the U.S. will be far
better for them if they solve the North Korean problem.
Meanwhile, U.S. Secretary of State Rex Tillerson arrived in
Moscow with the aim of persuading Russia to drop its support for
Syrian dictator Bashar Assad.
G 7 meeting of foreign ministers failed to impose sanctions on
Russia over its support for Syria's alleged chemical attack on
civilians.
"At the moment there is no consensus on new sanctions as an
effective instrument," Italian Foreign Minister Angelino Alfano,
who hosted the talks, said at the end of the two-day meeting.
Investors focus on import and export price indices due today,
producer prices and University of Michigan's consumer sentiment on
Thursday and consumer prices and retail sales on Friday for more
clues about the health of the U.S. economy.
The currency held steady against its major rivals in the Asian
session.
Reversing from an early high of 1.0595 against the euro, the
greenback fell to 1.0624. The next possible support for the
greenback is seen around the 1.08 region.
Data from Destatis showed that Germany's wholesale price
inflation eased for the first time in five months in March.
Wholesale prices rose 4.7 percent year-over-year in March,
slower than the 5.0 percent climb in February, which was the
highest rate of increase since August 2011
The greenback edged down to 1.0060 against the Swiss franc, from
a high of 1.0082 hit at 11:00 pm ET. Continuation of the
greenback's downtrend may see it challenging support around the
0.99 level.
The greenback slipped to 1.2517 against the pound, its lowest
since April 3. The greenback is seen finding support around the
1.275 mark.
The greenback that closed Tuesday's trading at 1.3326 against
the loonie edged down to 1.3313. The next likely support for the
greenback-loonie pair is seen around the 1.31 area.
Reversing from an early high of 0.7484 against the aussie, the
greenback edged down to 0.7506 and held steady thereafter. On the
downside, 0.77 is likely seen as the next support level for the
greenback.
On the flip side, the greenback bounced off to 109.76 against
the yen, from a 5-month low of 109.34 hit at 8:45 pm ET. If the
greenback-yen pair extends rise, it may locate resistance around
the 112.00 mark.
Data from the Bank of Japan showed that Japan's producer prices
rose 0.2 percent on month in March.
That was shy of expectations for a gain of 0.3 percent, which
would have been unchanged from February following an upward
revision from 0.2 percent.
Looking ahead, U.S. import price index for March and U.S. crude
oil inventories data are slated for release in the New York
session.
At 10:00 am ET, the Bank of Canada's interest rate decision is
due. Economists expect the bank to hold rates at 0.50 percent.
At 11:15 am ET, Bank of Canada Governor Stephen Poloz and Bank
of Canada Senior Deputy Governor Carolyn Wilkins will hold a press
conference on Monetary Policy Report in Ottawa.
At 10:00 am ET, Federal Reserve Bank of Dallas President Robert
Kaplan will participate in moderated question-and-answer session
before the Cornerstone Credit Union League Annual Meeting in Fort
Worth, Texas.
At 2:00 pm ET, U.S. monthly budget statement is set to be
published.
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