U.S. Dollar Falls After Fed Powell Remarks, U.S. Debt Ceiling Talks Pause
The U.S. dollar weakened against other major currencies in the
Asian session on Monday, following the remark's of Federal Reserve
Chair Jerome Powell hinted that interest rates may not need to rise
further. Also, a surprise pause in U.S. debt ceiling negotiations
added pressure on the currency.
Speaking at a Fed conference in Washington on Friday, U.S. Fed
Chair Jerome Powell reinforced expectations the central bank will
leave interest rates unchanged next month. Citing recent turmoil in
the banking sector, Powell suggested interest rates "may not need
to rise as much as it would have otherwise to achieve our
Traders remained cautious and optimistic that a deal will
finally be reached on raising the U.S. debt ceiling to avert a
first-ever U.S. default, despite talks being paused after
Republican negotiators walked out the meeting.
U.S. President Joe Biden and House Republican Speaker Kevin
McCarthy will meet later today for talks on averting a catastrophic
The U.S. could default on its debt as soon as June 1 if Congress
fails to raise the borrowing threshold.
In the Asian trading today, the U.S. dollar fell to a 4-day low
of 1.0829 against the euro and a 5-day low of 0.8969 against the
Swiss franc, from Friday's closing quotes of 1.0805 and 0.8992,
respectively. If the greenback extends its downtrend, it is likely
to find support around 1.10 against the euro and 0.88 against the
The greenback slipped to 137.49 against the yen and 1.2472
against the pound, from last week's closing quotes of 137.91 and
1.2439, respectively. The next possible downside target for the
greenback is seen around 133.00 against the yen and 1.26 against
Against the Australia, the New Zealand and the Canadian dollars,
the greenback edged down to 0.6667, 0.6292 and 1.3485 from last
week's closing quotes of 0.6645, 0.6273 and 1.3494, respectively.
The greenback may test support near 0.68 against the aussie, 0.64
against the kiwi and 1.33 against the loonie.
Looking ahead, Eurozone construction output for March is due to
be released at 5:00 am ET.
At 8:30 am ET, Federal Reserve Bank of St. Louis President James
Bullard will participate in a discussion on the U.S. economy and
monetary policy before the American Gas Association 2023 Financial
Forum, in Fort Lauderdale, United States.
In the New York session, Eurozone flash consumer confidence for
May is due to be released at 10:00 am ET.
At 10:50 am ET, Federal Reserve Bank of Richmond President
Thomas Barkin and Federal Reserve Bank of Atlanta President Raphael
Bostic will participate in conversation before the
Technology-Enabled Disruption Conference: Uncertainty and Prospects
for Disruptive Investments conference, hosted by the Federal
Reserve Bank of Richmond, in Richmond, United States.
US Dollar vs CAD (FX:USDCAD)
From Sep 2023 to Oct 2023
US Dollar vs CAD (FX:USDCAD)
From Oct 2022 to Oct 2023