Dollar Drops On Fed Rate Cut Bets
July 15 2019 - 1:06AM
RTTF2
The U.S. dollar fell against its most major counterparts in
early European deals on Monday, pressured by continued expectations
that the Federal Reserve would begin cutting rates later this
month, after dovish remarks from Federal Reserve Chairman Jerome
Powell last week.
Markets are pricing in a 25-basis point rate cut by the Fed at
its next meeting on July 30-31.
Investors cheered China data showing better than expected retail
sales and industrial production for June.
The data suggested that the economy is in better shape, offering
some relief to investors worried about slowing global growth.
Annual growth in industrial production advanced
more-than-expected to 6.3 percent from 5 percent in May, showing
the fastest growth in three months.
Likewise, retail sales grew at a faster pace of 9.8 percent
after rising 8.6 percent a month ago. Economists had forecast an
8.5 percent increase for June.
Today's economic calendar is light, with the New York Fed's
Empire State Manufacturing Index being the sole release.
Tuesday will see the release of retail sales figures, industrial
production and NAHB housing market index.
U.S. building permits and housing starts are due on Wednesday,
followed by Philadelphia Fed's Manufacturing Survey on Thursday and
the University of Michigan's preliminary consumer sentiment on
Friday.
The currency traded mixed against its major opponents in the
Asian session. While it held steady against the euro and the franc,
it fell versus the pound and the yen.
The greenback fell to 0.9828 against the franc, its lowest since
July 1. The greenback is seen finding support around the 0.96
region.
Data from the Federal Statistical Office showed that Swiss
producer and import prices decreased in June.
Producer and import prices decreased 1.4 percent year-on-year in
June.
The greenback depreciated to a 4-day low of 1.1284 against the
euro from last week's closing value of 1.1270. The next possible
support for the greenback is seen around the 1.15 level.
The greenback dropped back to 107.86 against the yen, on track
to pierce a session's low of 107.80 hit in the Asian session. The
currency is poised to find support around the 106.00 region.
Extending early losses, the greenback dropped to 0.6726 against
the kiwi for the first time since July 1. If the greenback extends
drop, 0.68 is possibly seen as its next support level.
The greenback pared gains to 1.3021 against the loonie, from a
high of 1.3043 hit at 9:30 pm ET. The currency is likely to find
support around the 1.285 region.
The greenback held steady against the aussie, after having
dropped to near a 2-week low of 0.7035 at 12:00 am ET. The pair
finished last week's deals at 0.7018.
On the flip side, the greenback rose to 1.2547 against the
pound, after falling to 1.2578 at 6:00 pm ET. On the upside, 1.24
is possibly seen as the next resistance for the greenback.
Data from property website Rightmove showed that UK house prices
declined for the first time this year in July.
House prices decreased 0.2 percent month-on-month in July,
following a 0.3 percent rise in June.
The New York Fed's Empire State Manufacturing Index for July is
due at 8:30 am ET.
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