U.S. Dollar Extends Decline After Fed Bullard Suggests To Put Off Hikes
20 Luglio 2018 - 1:00PM
RTTF2
The U.S. dollar extended its early slide against its major
counterparts in the New York session on Friday, after St. Louis Fed
President James Bullard remarked that the central bank should delay
further rate hikes amid yield curve inversion.
"Imminent yield curve inversion in the U.S. has become a real
possibility," Bullard said in a speech in Glasgow, Kentucky.
"Yield curve inversion is a naturally bearish signal for the
economy. This deserves market and policymaker attention."
With U.S. inflation expectations being soft, it is unnecessary
to push monetary policy normalization to an extent that the yield
curve inverts.
The currency has been already weighed by comments from U.S.
President Donald Trump, who accused China, EU and other countries
for manipulating their currencies.
"China, the European Union and others have been manipulating
their currencies and interest rates lower, while the U.S. is
raising rates while the dollars gets stronger and stronger with
each passing day - taking away our big competitive edge," Trump
said on Twitter.
This came a day after his remarks expressing discomfort with the
Federal Reserve's interest rate increases.
In the interview with CNBC, the U.S. President said that he is
"not thrilled" with interest rate hikes by the Fed.
The currency has been trading in a negative territory against
its major rivals in the European session.
The greenback fell to a 2-day low of 1.3116 against the pound,
following an advance to 1.2995 at 9:45 pm ET. The greenback is seen
finding support around the 1.33 level.
Data from the Office for National Statistics showed that the UK
budget deficit narrowed in June.
Public sector net borrowing, excluding public sector banks,
dropped by GBP 0.8 billion to GBP 5.4 billion. This was the lowest
June net borrowing since 2016. PSNB was bigger than the expected
GBP 5 billion.
The greenback reversed from an early high of 112.62 against the
yen, falling to a 9-day low of 111.58. The greenback is likely to
target support around the 110.00 area.
Data from the Ministry of Internal Affairs and Communications
showed that Japan consumer prices rose 0.7 percent on year in
June.
That was unchanged from the May reading, although it was shy of
expectations for 0.8 percent.
Having advanced to 1.1626 against the euro at 9:45 pm ET, the
greenback reversed direction and declined to a 3-day low of 1.1723.
Continuation of the greenback's downtrend may see it challenging
support around the 1.19 region.
Data from the European Central Bank showed that the euro area
current account surplus declined notably in May.
The current account surplus fell to a seasonally adjusted EUR
22.44 billion from EUR 29.55 billion in April. This was the lowest
since March 2015, when it totaled EUR 19.46 billion.
The greenback weakened to a 3-day low of 0.9938 against the
Swiss franc, following a rise to 1.0010 at 9:45 pm ET. If the
greenback continues its fall, 0.98 is possibly seen as its next
support level.
The greenback slipped to a 3-day low of 1.3115 versus the
loonie, after climbing to a session's high of 1.3290 at 9:45 pm ET.
Next key support for the greenback is seen around the 1.30
mark.
Data from Statistics Canada showed that Canadian retail sales
grew more than expected in May.
The retail sales rose 2 percent on month in May, following a 1.2
percent drop in the previous month.
The greenback edged down to 0.7421 against the aussie, from an
early more than a 2-week high of 0.7318. Against the kiwi, the
greenback hit a session's low of 0.6805, reversing from an early
high of 0.6720. On the downside, 0.76 and 0.69 are likely seen as
the next support levels for the greenback against the aussie and
the kiwi, respectively.
Grafico Cross Sterling vs US Dollar (FX:GBPUSD)
Da Mar 2024 a Apr 2024
Grafico Cross Sterling vs US Dollar (FX:GBPUSD)
Da Apr 2023 a Apr 2024