U.S. Dollar Falls On Hopes Of Powell To Be Named As Next Fed Chair
October 30 2017 - 1:46AM
RTTF2
The U.S. dollar weakened against its major counterparts in the
European session on Monday, following a media report that Fed
member Jerome Powell seemed to be the most likely choice for the
U.S. President Donald Trump as the next Fed Chair.
The Wall Street Journal reported that Jerome Powell may be named
as a successor to Yellen, whose term expires in February.
But the president is yet to make a formal decision and may
change his mind, the report showed.
Powell, who joined the Fed board in 2012, is perceived as a
moderate on monetary and economic policy.
Trump is likely to make an announcement on new Fed chair ahead
of his Asia tour beginning with Japan on November 5.
Investors await a two-day Fed meeting beginning tomorrow for
more clues on the possible trajectory of monetary policy.
Other central bank decisions this week include the BoJ
announcement on Tuesday and the BoE meeting on Thursday.
The currency has been trading in a negative territory in the
Asian session.
The greenback fell back to 113.54 against the yen, a pip short
of its Asian session's 4-day low of 113.53. If the greenback
weakens further, 112.00 is possibly seen as its next support
level.
Preliminary figures from the ministry of Economy, Trade and
Industry showed that Japan's retail sales increased as expected in
September, after falling in the previous month.
Retail sales rose a seasonally adjusted 0.8 percent
month-over-month in September, reversing a 1.6 percent fall in
August. The figure also matched consensus estimate.
The greenback declined to a 4-day low of 0.9965 against the
Swiss franc, from a high of 0.9990 hit at 3:15 am ET. Continuation
of the greenback's downtrend may see it challenging support around
the 0.98 region.
The greenback weakened to 1.1642 against the euro, compared to
1.1606 hit late New York Friday. Further downtrend may see it
challenging support around the 1.18 mark.
Figures from Destatis showed that Germany's retail sales grew
more than expected in September.
Retail sales increased 4.1 percent year-on-year in September,
the biggest in four months. Economists had forecast sales to rise
3.2 percent following the revised 3 percent increase in August.
The greenback slipped to a 4-day low of 1.3169 against the
pound, after having advanced to 1.3118 at 5:00 pm ET. The next
possible support for the greenback is seen around the 1.33
region.
The greenback dropped to a 4-day low of 0.7688 against the
aussie, off its early high of 0.7664. The greenback is seen finding
support around the 0.78 area.
The greenback eased to 0.6864 against the kiwi, from its
previous high of 0.6833. This may be compared to a 4-day low of
0.6888 hit at 5:00 pm ET. On the downside, 0.70 is possibly seen as
the next support for the greenback.
On the flip side, the greenback bounced off to 1.2835 against
the loonie, from a low of 1.2812 hit at 5:00 am ET. The greenback
is likely to locate resistance around the 1.31 level.
Looking ahead, U.S. personal income and spending outlays for
September as well as German preliminary CPI for October are set for
release in the New York session.
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