U.S. Dollar Falls On Geopolitical Concerns
April 11 2017 - 12:30AM
RTTF2
The U.S. dollar declined against its major counterparts in early
European deals on Tuesday, as treasury yields fell in the wake of
mounting geopolitical tensions over North Korea and Middle
East.
North Korea warned of 'catastrophic consequences' to the U.S.
government's 'outrageous actions' to deploy Navy strike group to
the Korean Peninsula.
The deployment showed Washington's "reckless moves for invading
had reached a serious phase," the foreign ministry said, adding
that North Korea is ready to defend with any mode of war.
Separately, U.S. President Donald Trump and British Prime
Minister Theresa May have agreed there is a "window of opportunity"
to persuade Russia to break ties with Syrian President Bashar
Al-Assad.
Trump is open to authorizing additional strikes on Syria if the
regime uses chemical weapons again or deploys barrel bombs in the
country, the White House had said on Monday.
The benchmark yield on 10-year note fell 2.35 percent, while
that of 2-year equivalent was down by 1.25 percent. Yields move
inversely to bond prices.
Speech at the University of Michigan on Monday, the Fed Chair
Janet Yellen hinted at raising rates at a gradual pace as the
central bank is targeting full employment and near 2 percent
inflation without letting the economy overheat.
With the day's economic calendar being light, investors focus on
producer prices and University of Michigan's consumer sentiment
index on Thursday and consumer prices and retail sales on Friday
for more clues about the health of the U.S. economy.
The greenback held steady against its major rivals in the Asian
session, with the exception of the yen.
Reversing from an early high of 1.0094 against the franc, the
greenback slipped to a 4-day low of 1.0066. If the greenback
extends slide, 0.98 is possibly seen as its next support level.
The greenback fell to 1.0605 against the euro, from an early
high of 1.0579. The greenback is poised to challenge support around
the 1.07 mark.
The greenback declined to a 4-day low of 1.2444 against the
pound, compared to 1.2416 hit late New York Monday. On the
downside, 1.255 is likely seen as the next support level for the
greenback.
Data from the British Retail Consortium showed that U.K.
like-for-like retail sales slid 1.0 percent on year in March.
That missed forecasts for a decline of 0.3 percent following the
0.4 percent decline in February.
The greenback that closed yesterday's trading at 110.91 against
the yen slipped to a 4-day low of 110.46. The greenback is seen
challenging support around the 106.00 area.
The greenback retreated to 0.7513 against the aussie, from an
early high of 0.7494. The currency is thus heading to pierce its
early 4-day low of 0.7513. Continuation of the greenback's
downtrend may see it challenging support around the 0.78
region.
The greenback hovered at an Asian session's 8-day low of 1.3314
against the loonie, compared to Monday's closing value of 1.3325.
The next possible support for the greenback-loonie pair is seen
around the 1.30 level.
In the New York session, U.S. NFIB small business index for
March is slated for release.
At 1:45 pm ET, Federal Reserve Bank of Minneapolis President
Neel Kashkari is expected to speak at the Minnesota Business
Partnership, in Minneapolis.
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