U.S. Dollar Subdued At Start Of The Week
July 07 2019 - 11:01PM
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The U.S. dollar slipped against its major counterparts in the
Asian session on Monday, as traders cautiously awaited
congressional testimony by Federal Reserve Chairman Jerome Powell
this week.
Powell testifies before Congress on monetary policy and the
state of the U.S. economy on Wednesday and Thursday as investors
look for clarity on the central bank's policy plans for the coming
months.
The minutes of the June FOMC meeting as well as closely-watched
reports on consumer and producer price inflation due this week
could also have an impact on perceptions of the likelihood of an
interest rate cut.
On Friday, data from the Labor Department showed that U.S.
employment surged up by 224,000 jobs in June after edging up 72,000
jobs in May. Economists had expected employment to increase by
about 160,000 jobs.
The dollar's consolidation come after Friday's rally, when
strong monthly jobs report dented hopes for a near-term interest
rate cut by the Federal Reserve.
The greenback dropped to 1.1233 against the euro, from a high of
1.1220 hit at 8:45 pm ET. The greenback is seen finding support
around the 1.14 region.
The greenback edged down to 0.9899 against the franc, after
rising to 0.9918 at 5:00 pm ET. On the downside, 0.96 is possibly
seen as the next support level for the greenback.
The greenback reversed from an early high of 1.2521 against the
pound, weakening to 1.2533. If the greenback extends decline, 1.27
is possibly seen as its next support level.
Following a high of 108.59 seen at 6:15 pm ET, the greenback
reversed direction and dropped to 108.28 against the yen. Further
downtrend may take the currency to a support around the 106.00
region.
Data from the Cabinet Office showed that Japan core machine
orders fell 7.8 percent on month in May - worth 842.9 billion
yen.
That missed expectations for a decline of 3.7 percent following
the 5.2 percent increase in April.
The greenback fell to 0.6991 against the aussie and 0.6645
against the kiwi, from its previous highs of 0.6974 and
0.6620,respectively. The greenback is poised to challenge support
around 0.715 against the aussie and 0.68 against the kiwi.
On the flip side, the greenback rose to 1.3083 against the
loonie, from a low of 1.3067 set at 5:00 pm ET. The next possible
resistance for the greenback is seen around the 1.34 mark.
Looking ahead, Eurozone Sentix investor sentiment for July is
due in the European session.
The U.S. consumer credit for May is scheduled for release at
3:00 pm ET.
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