U.S. Dollar Extends Decline
August 21 2018 - 1:37AM
RTTF2
The U.S. dollar extended its early fall against its most major
counterparts in the European session on Tuesday, following remarks
from U.S President Donald Trump indicating discontent with the
Federal Reserve's interest rate hikes and blaming China and Europe
of manipulating their currencies.
In an interview with Reuters, Trump said that he was "not
thrilled" with the Fed for raising interest rates.
He called the bank to do "what's good for the country" by
holding off on rate hikes.
"During this period of time I should be given some help by the
Fed. The other countries are accommodated, he added.
The Federal Reserve releases its minutes on Wednesday, which
could provide more insights about its latest view on rate
hikes.
Also in focus is the Fed's annual Economic Policy Symposium that
will begin in Jackson Hole, Wyoming, on Thursday. Fed Chair Jerome
Powell is scheduled to speak on Friday on topic "Monetary Policy in
a Changing Economy."
The currency has been trading in a negative territory against
its major rivals in the Asian session.
The greenback declined to 0.9867 against the franc, its lowest
since July 31. The greenback is poised to locate support around the
0.97 level.
The greenback fell back to 1.1540 against the euro, heading to
piece near a 2-week low of 1.1542 hit at 8:30 pm ET. On the
downside, 1.18 is possibly seen as the next support level for the
greenback.
The U.S. currency declined to near a 2-week low of 1.2846
against the pound, compared to Monday's closing value of 1.2795. If
the greenback falls further, 1.31 is likely seen as its next
support level.
The greenback weakened to near 2-week lows of 1.3021 against the
loonie, 0.7366 against the aussie and 0.6675 against the kiwi, from
yesterday's closing values of 1.3041, 0.7338 and 0.6638,
respectively. The greenback is likely to challenge support around
1.29 against the loonie, 0.75 against the aussie and 0.68 against
the kiwi.
On the flip side, the greenback bounced off to 110.29 against
the yen, from near a 2-month low of 109.77 touched at 9:00 pm ET.
The next likely resistance for the greenback is seen around the
111.00 level.
Looking ahead, at 8:30 am ET, Canada wholesale sales for June
are set for release.
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