U.S. Dollar Declines Ahead Of Inflation Data
August 09 2024 - 8:35AM
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The U.S. dollar dropped against its major counterparts in the
New York session on Friday, as investors await key inflation data
due next week for more clues about the potential size of a rate cut
in September.
Traders trimmed bets on aggressive Federal Reserve easing
following the release of the latest weekly jobless claims data.
Investors focus on a slew of economic data, including CPI, PPI
and retail sales due next week to help determine the Fed's rate cut
trajectory.
In an interview with the Providence Journal, Boston Fed
President Susan Collins said that policy easing should begin soon
if inflation continues to cool.
"If the data continue the way that I expect, I do believe that
it will be appropriate soon to begin adjusting policy and easing
how restrictive the policy is," Collins said.
The greenback fell to 1.0931 against the euro and 0.8632 against
the franc, off its early highs of 1.0909 and 0.8671, respectively.
The currency may locate support around 1.12 against the euro and
0.85 against the franc.
The greenback touched 1.2773 against the pound, setting a 3-day
low. The currency is poised to challenge support around the 1.31
level.
The greenback weakened to 146.26 against the yen, from an early
2-day high of 147.81. The currency is seen finding support around
the 142.00 level.
The greenback eased to 1.3721 against the loonie. This may be
compared to an early more than 2-week low of 1.3718. If the
currency falls further, it is likely to test support around the
1.33 region.
In contrast, the greenback recovered to 0.6566 against the
aussie and 0.6004 against the kiwi, from an early more than 2-week
low of 0.6605 and a 3-week low of 0.6034, respectively. The
currency is likely to locate resistance around 0.64 against the
aussie and 0.57 against the kiwi.
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