U.S. Dollar Bounces Off Amid Risk Aversion
December 10 2018 - 12:13AM
RTTF2
The U.S. dollar recovered from its early losses against its
major counterparts in the early European deals on Monday amid risk
aversion, as growth and trade worries kept investors nervous.
Trade worries resurfaced after White House trade adviser Peter
Navarro said the Trump administration would raise tariff rates on
China if the two countries fail to resolve their issues during the
90-day truce period.
China reported far weaker than expected exports and imports for
November and the Japanese economy contracted the most in over four
years in the third quarter, adding to investor worries over slowing
global growth.
Investors await developments in France, where President Emmanuel
Macron is set to hold talks with trade unions and employers'
organizations today, in a bid to defuse weeks of unrest in Paris
and other cities over rising gas prices and taxes.
U.K. political worries also weighed, as the U.K Parliamentary
vote on PM May's current Brexit proposal is due tomorrow. After the
vote, Prime Minister Theresa May goes to Brussels on Thursday for a
summit of national leaders.
The currency was lower against its major counterparts in the
Asian session. The greenback bounced off to 0.9902 against the
franc, from near a 2-month low of 0.9871 hit at 9:00 pm ET. The
greenback is likely to find resistance around the 1.01 level.
The greenback recovered to 112.75 against the yen and 1.1406
against the euro, from early 4-day low of 112.24 and near a 3-week
low of 1.1443, respectively. If the greenback rises further, 114.00
and 1.13 are possibly seen as its next resistance levels against
the yen and the euro, respectively.
The greenback rose back to 1.2706 against the pound, from an
early low of 1.2758. The greenback is thus not far from a 4-day
high of 1.2702 seen at the beginning of today's deals. The
greenback is seen finding resistance around the 1.25 level.
Reversing from an early low of 1.3293 against the loonie, the
greenback recovered to 1.3324. The next possible resistance for the
greenback is seen around the 1.35 region.
On the flip side, the greenback held steady against the kiwi,
after declining to a 5-day low of 0.6904 in late Asian deals. Early
in the Asian session, the currency had set near a 2-week high of
0.6840 against the kiwi. At Friday's close, the pair was worth
0.6858.
Having climbed to near a 4-week high of 0.7178 against the
aussie at 6:45 pm ET, the greenback eased and held steady. The pair
was worth 0.7199 at Friday's close.
Looking ahead, Canada housing starts for November and building
permits for October are due in the New York session.
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