Dollar Moves Down Amid Trade Talk Uncertainty, Fed Rate Hike Pause Hopes
March 13 2019 - 03:10AM
RTTF2
The U.S. dollar was lower against its most major counterparts in
the European session on Wednesday, as tame inflation data supported
hopes for a Fed rate hike pause in coming months and as US Trade
Representative Robert Lighthizer played down the likelihood of
reaching a trade deal with China soon.
Data from the Labor Department showed that U.S. consumer price
index rose by 0.2 percent in February after coming in unchanged for
three straight months. The uptick in consumer prices matched
economist estimates.
Core inflation slowed to 0.1 percent in February from 0.2
percent in January. Economists had expected a 0.2 percent rise in
prices.
Speaking to the Senate Finance Committee, Lighthizer said that
the U.S.-China trade talks may be in the "final weeks," but "major
issues" still remained to be resolved.
Unless those issues are resolved in favor of the United States,
a deal is unlikely to conclude, he added.
Investors await U.S. durable goods orders and producer prices
due shortly for directional clues.
The currency traded mixed against its major counterparts in the
Asian session. While it fell against the pound and the yen, it held
steady against the euro and the franc.
The greenback fell to a 6-day low of 1.0053 against the franc,
from a high of 1.0085 hit at 4:00 am ET. If the greenback falls
further, 0.98 is likely seen as its next support level.
The greenback slipped to 1.3162 against the pound and 1.1303
against the euro, off its early highs of 1.3057 and 1.1277,
respectively. The greenback is seen finding support around 1.33
against the pound and 1.14 against the euro.
The U.S. currency dropped to 1.3349 against the loonie, its
lowest since March 6. The next key support for the greenback is
seen around the 1.32 level.
The greenback retreated to 0.6845 against the kiwi and 0.7071
against the aussie, from its early high of 0.6830 and a 2-day high
of 0.7049, respectively. The next possible support for the
greenback is seen around 0.70 against the kiwi and 0.72 against the
aussie.
On the flip side, the greenback appreciated to 111.39 against
the yen, following a decline to 111.14 at 10:30 pm ET. The
greenback is poised to find resistance around the 113.5 level.
Data from the Bank of Japan showed that Japan producer prices
rose 0.2 percent on month in February.
That exceeded expectations for an increase of 0.1 percent
following the 0.6 percent decline in January.
The U.S. producer prices for February, durable goods orders and
construction spending for January are scheduled for release in the
New York session.
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