U.S. Dollar Falls On U.S. Policy Worries
July 17 2017 - 11:29PM
RTTF2
The U.S. dollar declined against its major counterparts in the
Asian session on Tuesday, as failure in the passage of the
Republican healthcare bill in the Senate raised doubts over the
future of U.S. tax reforms.
Republican Senators Jerry Moran and Mike Lee joined Senators
Susan Collins and Rand Paul in opposing the legislation to
dismantle and replace the Affordable Care Act on Monday, lacking
sufficient votes to pass.
The latest setback has been a major political blow to Trump
administration, triggering concerns about the President's ability
to deliver tax reforms.
The greenback has been already weighed by lowering hopes for a
Fed rate hike later this year, following dovish comments from Fed
Chair Janet Yellen as well as weak U.S. inflation and retail sales
data released last week.
Risk sentiment faded on caution ahead of BOJ and ECB meetings
due this week.
No big changes are expected from the European Central Bank and
the Bank of Japan when they meet to review their monetary policies
on Thursday.
The greenback showed mixed performance in the Asian session.
While the currency dropped against the franc and the euro, it held
steady against the yen. Against the pound, it rose.
The greenback fell to more than a 14-month low of 1.1538 against
the euro and more than a 2-week low of 0.9588 versus the franc,
compared to Monday's closing values of 1.1478 and 0.9624,
respectively. The next possible support for the greenback is seen
around 1.17 against the euro and 0.93 against the franc.
The greenback dropped to 111.99 against the Japanese yen, its
lowest since June 30. Continuation of the greenback's downtrend may
see it challenging support around the 110.00 area.
Reversing from an early high of 1.3050 against the pound, the
greenback edged down to 1.3105. The pair finished Monday's trading
at 1.3053. The greenback is seen finding support around the 1.345
region.
Pulling away from an early 4-day high of 1.2701 against the
loonie, the greenback weakened to 1.2636. The greenback is seen
finding support around the 1.25 mark.
The greenback slid to more than a 2-year low of 0.7924 versus
the aussie, off its prior 4-day high of 0.7786. Continuation of the
greenback's downtrend may see it challenging support around the
0.81 region.
The greenback hit a session's low of 0.7361 versus the kiwi,
from a 5-day high of 0.7261 hit at 6:45 pm ET. The greenback is
poised to target support around the 0.75 level.
Looking ahead, U.K. consumer, producer and retail price indexes
for June and house price index for May and Germany ZEW economic
sentiment index for July are due to be released in the European
session.
In the New York session, U.S. import price index for June and
U.S. NAHB housing market index for July are slated for release.
At 9:30 am ET, Bank of England Governor Mark Carney is expected
to speak at the unveil of the new £10 note, in Hampshire.
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