U.S. Dollar Down As Fed Minutes In Focus
January 04 2023 - 03:01AM
RTTF2
The U.S. dollar dropped against its major counterparts in the
European session on Wednesday, as investors awaited the minutes of
the Federal Reserve's December meeting for more clarity on the
monetary policy outlook.
The Fed minutes due to be released later in the day could offer
more signals on the trajectory and pace of rate hikes in the
future.
The Institute of Supply Management will publish manufacturing
PMI for December at 10 am ET. The PMI is expected to ease to 48.5
from 49 in November.
The benchmark yield on the 10-year treasury note fell to 3.7
percent. Yields move inversely to bond prices.
The dollar index that tracks the greenback against a basket of
other currencies dropped to 103.83.
The greenback eased to 129.93 against the yen, off an early
5-day high of 131.47. On the downside, 120.00 is possibly seen as
its next support level.
The greenback was down against the pound, at a 5-day low of
1.2087. Should the dollar falls further, it is likely to test
support around the 1.22 region.
Extending early decline, the greenback fell to a fresh 3-week
low of 0.6886 against the aussie. The greenback is likely to test
support around the 0.72 level.
The greenback edged down to 1.0635 against the euro and 0.9253
against the franc, after rising to 1.0540 and 0.9367, respectively
in early deals. Next immediate support for the currency is seen
around 1.10 against the euro and 0.90 against the franc.
The greenback weakened to 1.3542 against the loonie and 0.6353
against the kiwi, reversing from its early highs of 1.3680 and
0.6239, respectively. The next possible support for the greenback
is seen around 1.30 against the loonie and 0.66 against the
kiwi.
U.S. ISM manufacturing PMI for December is set for release in
the New York session.
The Fed minutes from the December 13-14 meeting will be
published at 2:00 pm ET.
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