U.S. Dollar Advances Before Holiday Break
24 Dicembre 2019 - 05:48AM
RTTF2
The U.S. dollar gained against its most major counterparts in
early European deals on Tuesday in thin trading on the occasion of
Christmas Eve.
Trading remained tight heading into the holiday break and amid a
lack of fresh fundamental catalysts.
Traders await developments on the trade front after China
announced plans to lower tariffs on a range of products and U.S.
President Donald Trump said an initial U.S.-China trade pact would
be signed soon.
Further, Chinese Premier Li Keqiang said the government will
study taking more measures to lower financing costs for smaller
companies.
In economic releases, the Richmond Fed manufacturing index for
December is scheduled for release later in the day. The index is
seen rising 1 point, compared to a drop of 1 point in the previous
month.
The currency traded mixed against its major counterparts in the
Asian session. While it rose against the franc and the yen, it held
steady against the euro and the pound.
The greenback hit a 1-week high of 0.9831 versus the franc, from
a low of 0.9811 seen at 5:00 pm ET. The currency may locate
resistance around the 1.01 region, if it rises again.
Reversing from its early lows of 1.2948 against the pound and
1.1094 against the euro, the greenback edged up to 1.2922 and
1.1080, respectively. Further rally may take the greenback to
resistance levels of around 1.28 against the pound and 1.08 against
the euro.
The greenback gained to 1.3160 against the loonie, from a low of
1.3141 set at 5:30 pm ET. Next key resistance for the greenback is
seen around the 1.33 level.
In contrast, the greenback held steady against the yen, after
having pulled back from a high of 109.44 recorded at 7:45 pm ET. At
yesterday's close, the pair was worth 109.39.
The minutes from the Bank of Japan's meeting held on October 30
and 31 showed that a few board members of the bank shared the view
that the central bank should not only conduct monetary policy but
also enhance its cooperation with the government in terms of
economic policies and prepare for the next economic downturnk.
A different member pointed out that the BoJ should continue to
examine whether additional monetary easing would be necessary.
The greenback dropped to 0.6641 against the kiwi, its lowest
since July 29. If the currency drops further, it may challenge
support around the 0.68 level.
The greenback fell back to 0.6924 against the aussie, on track
to break an 11-day low of 0.6930 seen at 7:00 pm ET. The greenback
is seen finding support around the 0.71 level.
Looking ahead, Richmond Fed manufacturing index for December is
due out in the New York session.
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