U.S. Dollar Slides Ahead Of Fed Meeting
March 18 2019 - 5:07AM
RTTF2
The U.S. dollar drifted lower against its most major opponents
in the European session on Monday, ahead of the Federal Reserve's
policy meeting due this week, with some investors expecting the
policymakers to lower their interest rate forecasts for this
year.
The Fed announces its decision on Wednesday, with economists
widely expecting it to keep rates unchanged.
The benchmark interest rate is presently in a range of 2.25 to
2.5 percent.
Market participants await the Fed statement for more indications
about outlook for interest rates.
There is speculation that Fed policymakers could cut their
interest rate forecasts, or "dot plots", indicating a few or no
further hikes this year.
With U.S. economic indicators showing weakness recently, traders
are pricing the case for the Fed to maintain its patient stance on
further rate hikes this year.
The currency traded mixed against its major counterparts in the
Asian session. While it rose against the pound and the yen, it held
steady against the franc. Against the yen, it rose.
The greenback reversed from an early high of 111.63 against the
yen, falling to 111.44. If the greenback slides further, 110.00 is
likely seen as its next support level.
Final data from the Ministry of Economy, Trade and Industry
showed that Japan's industrial production in January declined less
than estimated earlier.
Industrial production fell a seasonally adjusted 3.4 percent
month-on-month in January, following a 3.7 percent decline
estimated earlier.
The U.S. dipped to a 2-week low of 1.1359 against the euro and
near a 2-week low of 0.9997 against the franc, off its early highs
of 1.1319 and 1.0025, respectively. The next key support for the
greenback is seen around 1.15 against the euro and 0.98 against the
franc.
Reversing from its early high of 1.3347 against the loonie, the
greenback edged down to 1.3302. The greenback is poised to find
support around the 1.30 area.
On the flip side, the greenback rebounded to 0.7095 against the
aussie and 0.6859 against the kiwi, from its early near 3-week lows
of 0.7120 and 0.6874, respectively. On the upside, 0.68 and 0.67
are possibly seen as its next resistance levels against the aussie
and the kiwi, respectively.
The greenback appreciated to 1.3221 against the pound, from a
low of 1.3300 hit at 7:30 pm ET. The greenback is seen finding
resistance around the 1.31 level.
The U.S. NAHB housing market index for March is scheduled for
release shortly.
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