U.S. Dollar Falls Against Majors
May 15 2017 - 2:37AM
RTTF2
The U.S. dollar was lower against its major counterparts in the
European session on Monday, as investors reduced bets over the pace
of possible Fed tightening for this year following the release of
weak U.S. data on Friday.
While the U.S. retail sales grew less-than-expected in April,
core inflation fell short of market estimates, separate reports
showed Friday. These weak data raised doubts about the number of
possible rate hikes by the Fed this year.
According to CME Group's FedWatch tool, the probability of a 25
basis point hike in June had dropped to 73.8 percent from 83
percent after the data.
While speaking in Dublin on Friday, Chicago Fed President chief
Charles Evans said that he is comfortable with just another rate
hike this year, if inflation outlook remains uncertain.
Investors await NAHB housing market index due today, followed by
industrial production, building permits and housing starts on
Tuesday as well as weekly jobless claims on Thursday for more clues
about the strength of the economy.
The greenback showed mixed performance in the Asian session.
While the currency rose against the yen, it held steady against the
franc and the euro. Against the pound, it declined.
The greenback fell to a 6-day low of 0.9975 against the Swiss
franc, 4-day low of 1.2940 against the pound and a weekly low of
1.0972 against the euro, from its early highs of 1.0019, 1.2880 and
1.0923, respectively. If the greenback extends decline, it may
challenge support around 0.98 against the franc, 1.30 against the
pound and 1.10 against the euro.
The greenback eased back to 113.40 against the yen, from an
early high of 113.73. This may be compared to a weekly low of
113.12 set at the beginning of today's trading session. The next
possible support for the greenback is seen around the 112.00
region.
Data from the Bank of Japan showed that Japan's producer prices
rose 0.2 percent on month in April.
That was unchanged from the March reading, and it surpassed
expectations for a decline of 0.1 percent.
The greenback slipped to 1.3613 against the loonie, its weakest
since April 27. If the greenback-loonie pair extends decline, 1.35
is likely seen as its next support level.
The greenback that closed Friday's trading at 0.6854 against the
kiwi and 0.7385 against the aussie fell to a 4-day low of 0.6915
and near a 2-week low of 0.7444, respectively. Continuation of the
greenback's downtrend may see it challenging support around 0.72
against the kiwi and 0.76 against the aussie.
Looking ahead, Canada existing home sales for April, U.S. NAHB
housing market index and New York Fed's empire manufacturing survey
for May are set for release in the New York session.
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