U.S. Dollar Falls Amid Fed Rate Cut Speculation
25 Settembre 2024 - 6:10AM
RTTF2
The U.S. dollar weakened against other major currencies in the
Asian session on Wednesday, as traders speculate for another
half-point rate cut in November.
Investors await Fed Chair Jerome Powell's remarks on Thursday
and U.S. inflation data on Friday for further policy cues.
Asian stock markets traded higher, boosted by markets in China,
Hong Kong and Taiwan after China's central bank unveiled its
biggest stimulus since the pandemic to support the nation's
economy, primarily the property sector. Spike in commodity prices
also supported the markets.
Fed Governor Michelle Bowman said Tuesday that inflationary
risks remain, and the Fed should lower interest rates at a
"measured" pace.
She noted that lowering rates too quickly risks unleashing
pent-up demand and cash, which would send inflation upward
again.
Her comments stand in contrast to commentary from a handful of
other policymakers who saw scope for further easing.
The currency started falling by a weak consumer confidence
report on Tuesday.
Data from the Conference Board showed that the consumer
confidence index fell to 98.7 in September from an upwardly revised
105.6 in August. Economists had expected the index to edge down to
103.8 from the 103.3 originally reported for the previous
month.
In the Asian trading today, the U.S. dollar fell to a 1-month
low of 1.1199 against the euro and a 2-1/2-year low of 1.3430
against the pound, from yesterday's closing quotes of 1.1180 and
1.3412, respectively. The greenback may test support near 1.13
against the euro and 1.36 against the pound.
Against the yen and the Swiss franc, the greenback slipped to a
5-day low of 142.91 and a 1-week low of 0.8415 from Tuesday's
closing quotes of 143.21 and 0.8433, respectively. The next
possible downside target for the greenback is seen around 138.00
against the yen and 0.82 against the franc.
Against Australia, the New Zealand and the Canadian dollars, the
greenback slipped to more than a 1-1/2-year low of 0.6909, a
9-month low of 0.6356 and nearly a 7-month low of 1.3420 from
Tuesday's closing quotes of 0.6891, 0.6338 and 1.3430,
respectively. If the greenback extends its downtrend, it is likely
to find support around 0.70 against the aussie, 0.65 against the
kiwi and 1.32 against the loonie.
Looking ahead, U.S. MBA mortgage approvals data, U.S. new home
sales data for August and U.S. EIA crude oil data are slated for
release in the New York session.
Grafico Cross US Dollar vs CHF (FX:USDCHF)
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Grafico Cross US Dollar vs CHF (FX:USDCHF)
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