U.S. Dollar Weakens Ahead Of Fed Decision
January 30 2018 - 2:41AM
RTTF2
The U.S. dollar erased its advance and dropped against its major
counterparts in the European session on Tuesday, as investors look
forward to the Federal Reserve's two-day policy meeting beginning
today amid expectations to leave interest rate unchanged.
Economists widely expect the benchmark rate to remain unchanged
at a range between 1.25-1.50 percent.
The meeting is the last under the leadership of Fed Chair Janet
Yellen as Powell takes over the helm in February.
Investors await the Fed policy statement for hints about the
central bank's views to interest rate hikes in the months to
follow.
The S&P/Case-Shiller home price index for November will be
released at 9:00 am ET, while the Conference Board's consumer
confidence index for January is due at 10:00 am ET.
President Donald Trump's State of the Union Address is scheduled
for tomorrow, at which he is expected to tout his "record-setting"
accomplishments and lay plans for new measures in this year.
The currency was higher against its major rivals in the Asian
session, with the exception of the yen.
The greenback hit a 5-day low of 0.9313 versus the franc, after
having advanced to a 4-day high of 0.9393 at 9:45 pm ET. The
greenback is seen finding support around the 0.92 level.
The greenback dropped to 0.7349 against the kiwi, 0.8112 against
the aussie and 1.2310 against the loonie, from its early 8-day high
of 0.7279 and 4-day highs of 0.8043 and 1.2379, respectively. On
the downside, 0.75, 0.83 and 1.21 are possibly seen as the next
support levels for the greenback against the kiwi, the aussie and
the loonie, respectively.
The greenback slipped to a 4-day low of 1.2441 versus the euro,
reversing from an early high of 1.2337. If the greenback declines
further, it may target support around the 1.26 area.
Preliminary flash estimate from Eurostat showed that the euro
area economy grew at a slightly slower pace in the fourth
quarter.
Gross domestic product expanded by seasonally adjusted 0.6
percent sequentially in the fourth quarter, following 0.7 percent
increase seen in the third quarter. The rate came in line with
expectations.
The greenback edged down to 108.53 versus the yen and 1.4137
against the pound, from its early session's high of 109.20 and a
weekly high of 1.3980, respectively. The next possible support for
the greenback is seen around 106.00 versus the yen and 1.42 against
the pound.
S&P/Case-Shiller home price index for November and U.S.
consumer confidence for January will be out shortly.
The Bank of England Governor Mark Carney testifies before the
House of Lords Economic Affairs Committee, in London, at 10:30 am
ET.
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