U.S. Dollar Slides Ahead Of Fed Meeting
April 30 2019 - 2:00AM
RTTF2
The U.S. dollar was defensive against its major counterparts in
the European session on Tuesday, as investors geared up for the
Federal Reserve's meeting beginning today amid expectations that it
would keep rate on hold.
The Fed funds rate is presently in a range between 2.25 percent
and 2.50 percent.
Market participants keenly await the accompanying statement and
Fed Chairman Jerome Powell's subsequent press conference for policy
outlook.
In its last meeting in March, the Fed said it would adopt a more
patient approach on monetary policy and projected no hike through
this year.
Today's U.S. economic calendar includes data on pending home
sales and consumer confidence, due at 10:00 am ET.
China factory activity expanded for a second straight month in
April but at a much slower pace, rekindling investor concerns over
slowing global growth.
The official Purchasing Managers' Index for manufacturing
unexpectedly fell to 50.1 in April from 50.5 in March, while the
Caixin-Markit China PMI slipped to 50.2 against the 50.8 reading in
the previous month. Growth in China's services sector also slowed
in the month, an official survey showed.
The currency traded mixed against its major counterparts in the
Asian session. While it held steady against the franc and the euro,
it dropped against the yen and the pound.
The greenback slipped to near a 3-week low of 111.27 against the
yen, from a high of 111.68 hit at 5:00 pm ET. The next possible
support for the greenback is seen around the 109.00 level
The greenback touched a 6-day low of 1.0174 against the franc,
after rising to 1.0199 at 2:00 am ET. The greenback is poised to
find support around the 1.00 level.
Having climbed to 1.1176 against the euro at 2:00 am ET, the
greenback reversed direction and slid to a 6-day low of 1.1216. The
greenback is likely to find support around the 1.13 region, should
it falls again.
Preliminary data from the statistical office Eurostat showed
that Eurozone's unemployment rate dropped in March to its lowest
level in more than a decade.
The jobless rate fell to 7.7 percent from 7.8 percent seen in
each of the previous two months. Economists had expected the rate
to remain steady in March.
The greenback fell to a weekly low of 1.2997 against the pound,
reversing from a high of 1.2924 seen at 5:00 pm ET. The greenback
is seen finding support around the 1.32 level.
The greenback weakened to a session's low of 1.3440 against the
loonie, following a 4-day high of 1.3480 set at 2:30 am ET. Next
key support for the greenback may be located around the 1.32
region.
The greenback retreated to 0.7059 against the aussie, from a
4-day high of 0.7034 hit at 9:45 pm ET. This may be compared to a
6-day low of 0.7069 recorded earlier in the Asian session. On the
downside, 0.725 is possibly seen as the next support for the
greenback.
The greenback fell back to 0.6679 against the kiwi, short of few
pips from a 4-day low of 0.6682 seen at 8:45 pm ET. Further
downtrend may take the greenback to a support around the 0.68
level.
Looking ahead, at 8:00 am ET, German flash inflation for April
will be out.
In the New York session, Canada GDP data for February and
industrial product price index for March, as well as U.S.
S&P/Case-Shiller home price index for February, pending home
sales for March and consumer confidence index for April are due to
be released.
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