U.S. Dollar Slides Against Majors
June 19 2017 - 3:03AM
RTTF2
The U.S. dollar declined against its major rivals in the
European session on Monday, as last week's soft economic data
cooled expectations for a Fed rate hike in December.
Data from the Commerce Department showed that the housing starts
fell 5.5 percent to a seasonally adjusted annual pace of 1.09
million units, the lowest since September 2016. The decline
disappointed economists, who had expected housing starts to climb
to a rate of 1.215 million.
The University of Michigan said its preliminary consumer
sentiment for June fell to 94.5 from a revised 97.1 in May. The
figure was the weakest since last November.
The CME Fed Watch tool is showing a possibility of less than 40
percent for a Fed rate hike in December.
The greenback was also weighed by risk-on mood in Europe, as
French president Emmanuel Macron's party scored an overwhelming
victory in the second round of parliamentary elections and Brexit
talks got underway in Brussels.
The greenback showed mixed performance in the Asian session.
While the currency rose against the franc and the yen, it fell
against the pound. Against the pound, it held steady.
The greenback declined to 0.9696 against the Swiss franc, its
lowest since June 14. Continuation of the greenback's downtrend may
see it challenging support around the 0.95 region.
The greenback pared gains to 110.92 against the yen, from an
early high of 111.21. The next possible support for the
greenback-yen pair is seen around the 110.00 region.
Data from the Ministry of Finance showed that Japan recorded a
merchandise trade deficit of 203.367 billion yen in May.
That missed forecasts for a surplus of 43.3 billion yen
following the 481.7 billion yen surplus in April.
The greenback slipped to a 4-day low of 1.1213 against the euro
and a 5-day low of 1.2814 against the pound, compared to Friday's
closing values of 1.1196 and 1.2776, respectively. If the greenback
extends drop, 1.14 and 1.295 are likely seen as its next support
levels against the euro and the pound, respectively.
The greenback retreated to 0.7615 against the aussie, from an
early high of 0.7585. The greenback is likely to target 0.78 as the
next support level.
The greenback reversed from an early high of 1.3252 against the
loonie and eased back to 1.3220. The dollar had earlier set a 5-day
low of 1.3209 in the Asian session. Next likely support level for
the greenback is seen around the 1.30 level.
Looking ahead, at 8:00 am ET, New York Fed President William
Dudley speaks at the North Country Chamber of Commerce, in
Plattsburgh.
Deutsche Bundesbank President Jens Weidmann delivers speech at
the Colloquium in memoriam Prof Dr Hans Tietmeyer in Frankfurt at
11:00 am ET.
US Dollar vs Yen (FX:USDJPY)
Forex Chart
From Apr 2024 to May 2024
US Dollar vs Yen (FX:USDJPY)
Forex Chart
From May 2023 to May 2024