U.S. Dollar Extends Fall On Weak Data, North Korean Worries
April 17 2017 - 1:06AM
RTTF2
The U.S. dollar extended its early slide against its most major
rivals in early European deals on Monday, as treasury yields
declined in the wake of weak U.S. economic data and the U.S. said
it is working with China and other allies on a range of responses
to North Korea's failed missile launch over the weekend.
The benchmark yield on 10-year treasuries fell 2.21 percent,
while that of 2-year equivalent was down by 1.19 percent. Yields
move inversely to bond prices.
Disappointing economic reports on retail sales and consumer
prices released last week raised expectations of slower pace of
rate-tightening cycle by the Federal Reserve.
During a visit to North Korean border, US Vice-President Mike
Pence warned that "the era of strategic impatience is over" and
military "should not mistake the resolve of the United States of
America to stand with our allies.
Investors await New York Fed's empire manufacturing index and
NAHB housing price index due later in the day for more clues about
economy.
The currency has been trading in a negative territory in the
Asian session.
The greenback dropped to a 4-day low of 1.2548 against the
pound, compared to 1.2522 hit late New York Friday. The greenback
is likely to find support around the 1.265 mark.
The greenback that finished Friday's trading at 1.0047 against
the franc declined to a 4-day low of 1.0023. The next possible
support for the greenback-franc pair is seen around the 0.99
region.
The greenback slipped to 1.0651 against the euro, its weakest
since April 13. The greenback is seen finding support around the
1.075 area.
The greenback declined to 4-day lows of 1.3295 against the
loonie and 0.7595 against the aussie, from Friday's closing values
of 1.3325 and 0.7574, respectively. Continuation of the greenback's
downtrend may see it challenging support around 1.31 against the
loonie and 0.77 against the aussie.
The greenback fell to more than a 5-month low of 108.13 against
the Japanese yen in the Asian session before recouping some of its
losses in a short while. The pair was trading at 108.36, compared
to last week's closing value of 108.57.
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