U.S. Dollar Weakens On Rate Cut Hopes
August 19 2024 - 9:07AM
RTTF2
The U.S. dollar was lower against its most major counterparts in
the New York session on Monday, as dovish comments from Fed
officials fueled optimism about a rate cut in September.
Minneapolis Fed President Neel Kashkari said that it is
appropriate to debate about a rate cut in September amid
"concerning signs" in the labor market.
In an interview with the Financial Times published on Sunday,
San Francisco Federal Reserve Bank President Mary Daly noted that
it is time to consider adjusting borrowing costs.
Investors await Federal Reserve Chairman Jerome Powell's speech
at the Jackson Hole Economic Symposium that could shed light on
rate-cut trajectory.
Traders also look ahead to the release of the minutes from the
Fed's July meeting on Wednesday.
In economic news, the Conference Board released a report showing
its reading on leading U.S. economic indicators fell by much more
than expected in the month of July.
The Conference Board said its leading economic index slid by 0.6
percent in July after dipping by 0.2 percent in June. Economists
had expected the index to decrease by 0.3 percent.
The greenback declined to near a 5-week low of 0.6722 against
the aussie and 5-week lows of 1.3635 against the loonie and 0.6098
against the kiwi, off its early highs of 0.6661, 1.3685 and 0.6046,
respectively. The currency is poised to challenge support around
0.68 against the aussie, 1.33 against the loonie and 0.63 against
the kiwi.
The greenback dropped to near an 8-month low of 1.1073 against
the euro and near a 5-week low of 1.2997 against the pound, from
its early highs of 1.1022 and 1.2930, respectively. The currency is
seen finding support around 1.12 against the euro and 1.31 against
the pound.
The greenback pulled back to 0.8627 against the franc. This may
be compared to an early nearly 2-week low of 0.8615. If the
currency falls further, it is likely to test support around the
0.84 region.
Meanwhile, the greenback recovered to 146.71 against the yen,
reversing from an early nearly 2-week low of 145.18. The currency
is likely to locate resistance around the 152.00 level.
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