U.S. Dollar Falls On Risk Appetite, Fed Rate Hike Doubts
28 Dicembre 2018 - 07:59AM
RTTF2
The U.S. dollar declined against its major counterparts in the
European session on Friday, as rebounding oil prices reduced the
demand for safe-haven assets, while receding hopes for Fed rate
hikes in future also weighed.
Crude oil futures rebounded despite concerns about excess supply
in the market and fears about possible drop in energy demand due to
global economic slowdown.
Fears over U.S. government shutdown continued as Democrats and
Republicans showed no signs of compromise on Thursday to end the
standoff over funding Mexican border wall.
Overnight data showing weaker than expected U.S. consumer
confidence index in December also undermined the currency.
Data from the Conference Board showed that consumer confidence
index slumped to 128.1 in December after dipping to a revised 136.4
in November.
Economists had expected the consumer confidence index to edge
down to 134.0.
In economic releases, the U.S. pending home sales data is due at
10:00 am ET.
The currency has been trading in a negative territory against
its major counterparts in the Asian session.
The greenback dropped to 0.9806 against the franc, a level not
seen since October 1. The greenback is seen finding support around
the 0.97 level.
The greenback weakened to more than a 4-month low of 110.24
against the yen, following an advance to 111.02 at 5:00 pm ET. The
greenback is poised to find support around the 108.00 area.
Data from the Ministry of Economy and Industry showed that Japan
retail sales fell a seasonally adjusted 1.0 percent on month in
November.
That missed expectations for a decline of 0.4 percent following
the 1.3 percent increase in October.
The greenback slipped to a weekly low of 1.1473 against the
euro, from a high of 1.1426 hit at 5:00 pm ET. On the downside,
1.16 is likely seen as the next support for the greenback.
Having advanced to 1.2635 against the pound at 4:00 am ET, the
greenback reversed direction and dropped to a 2-day low of 1.2693.
The greenback is likely to find support around the 1.28 level.
The greenback pared gains to 1.3595 against the loonie, 0.7068
against the aussie and 0.6718 against the kiwi, from its early
highs of 1.3626, 0.7026 and 0.6694, respectively. The next possible
support for the greenback is seen around 1.33 against the loonie,
0.73 against the aussie and 0.685 against the kiwi.
Looking ahead, at 8:00 am ET, German preliminary CPI for
December is set for release.
In the New York session, U.S. advance goods trade balance,
pending home sales and wholesale inventories for November will be
out.
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