U.S. Dollar Falls As FOMC Prepares To Meet
July 26 2016 - 12:22AM
RTTF2
The U.S. dollar weakened against most major currencies in the
early European session on Tuesday, as investors remain cautious
ahead of central bank meetings in the U.S. and Japan this week.
The U.S. Federal Reserve is scheduled to begin a two-day
monetary policy meeting later today. The central bank is widely
expected to leave interest rates unchanged, but the bank's
accompanying statement is likely to be in focus, as investors
attempt to gauge the outlook for the next rate hike.
The Bank of Japan will announce its interest rate decision this
Friday. Speculations are rife that the BOJ is likely to take
additional easing steps at the monetary policy meeting.
In the Asian trading today, the U.S. dollar held steady against
its major rivals.
In the early European session, the U.S. dollar fell to 4-day
lows of 1.1020 against the euro and 0.9845 against the Swiss franc,
from early highs of 1.0983 and 0.9864, respectively. The greenback
may test support near 1.14 against the euro and 0.96 against the
Swiss franc.
Against the Australian and the New Zealand dollars, the
greenback slid to a 1-week low of 0.7536 and a 6-day low of 0.7063
from early highs of 0.7463 and 0.6984, respectively. If the
greenback extends its downtrend, it is likely to find support
around 0.77 against the aussie and 0.73 against the kiwi.
The greenback dropped to nearly a 2-week low of 104.23 against
the yen, from an early high of 105.89. On the downside, 100.00 is
seen as the next support level for the greenback.
Against the Canadian dollar, the greenback edged down to 1.3179
from an early high of 1.3231. The greenback is likely to find
support near the 1.28 region.
Looking ahead, U.K. BBA mortgage approvals for June is due to be
released at 4:30 am ET.
In the New York session, flash estimate of Markit's U.S. service
sector PMI for July, U.S. consumer confidence index for July, new
home sales data for June, U.S. S&P Case-Shiller home price
index for May and U.S. Richmond Fed manufacturing index for July
are slated for release.
Sterling vs CHF (FX:GBPCHF)
Forex Chart
From Mar 2024 to Apr 2024
Sterling vs CHF (FX:GBPCHF)
Forex Chart
From Apr 2023 to Apr 2024
