U.S. Dollar Drops Against Majors
August 21 2017 - 6:29AM
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The U.S. dollar traded lower against its key counterparts in the
European session on Monday, as the dismissal of chief strategist
Steve Bannon from the Trump team escalated worries about the
President's ability to push through his economic agenda.
Trump fired Bannon on Friday, becoming the latest to depart from
the president's administration in turmoil. Although Bannon offered
his resignation to Trump on August 7, it had been pushed back
following the violence in a white nationalist rally in
Charlottesville, Virginia.
The latest political turmoil in the White House triggered
worries about Trump's ability to make progress on his pro-growth
promises.
Investors focus on the Federal Reserve's economic policy
symposium in Jackson Hole, Wyoming, later this week.
Fed Chair Janet Yellen is scheduled to speak at the symposium on
Friday, and traders are likely to keep an eye on her remarks for
clues about the outlook for monetary policy.
Reports on new and existing home sales and durable goods orders
are also likely to attract attention in the coming days.
The greenback showed mixed performance in the Asian session.
While the currency fell against the pound and the yen, it rose
against the euro and the franc.
Reversing from an early 4-day high of 0.9685 against the Swiss
franc, the greenback eased back to 0.9637. If the greenback-franc
pair extends slide, 0.93 is possibly seen as its next support
level.
Data from the Swiss National Bank showed that Switzerland's
money supply growth remained stable in July.
The broad monetary aggregate M3 grew 4 percent year-on-year in
July, the same rate as seen in June.
The greenback hit a 4-day low of 1.1790 against the euro, after
having advanced to 1.1731 at 3:00 am ET. On the downside, 1.19 is
likely seen as the next support level for the greenback.
Monthly report from the Bundesbank showed that the German
economy is set to continue strong momentum in the current
quarter.
The central bank said GDP growth in the current year could even
be somewhat stronger than expected in the June projection. The bank
had earlier forecast 1.9 percent growth for 2017.
The greenback edged down to 108.80 against the yen and 1.2903
against the pound, off its early highs of 109.42 and 1.2850,
respectively. The next possible support levels for the greenback
are seen around 106.00 against the yen and 1.31 against the
pound.
The greenback pared gains to 1.2567 against the loonie, from a
high of 1.2607 hit at 5:00 am ET. The greenback may possibly
challenge support around the 1.22 region.
The greenback slid to a 4-day low of 0.7950 against the aussie,
from a high of 0.7911 hit at 5:00 am ET. The greenback is seen
finding support around the 0.82 mark.
The greenback reversed from an early high of 0.7305 against the
kiwi, dropping to 0.7332. Continuation of the greenback's downtrend
may see it challenging support around the 0.75 area.
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