U.S. Dollar Slides Against Majors
August 31 2015 - 11:05PM
RTTF2
The U.S. dollar weakened against the other major currencies in
the Asian session on Tuesday, as downbeat manufacturing data out of
China intensified worries about the outlook for global growth,
which could reduce the chance of Federal Reserve interest rate hike
at its next meeting.
Investors are worried about whether the financial turmoil in
China could postpone the Fed rate hike.
Some economists expect that the Federal Reserve may keep its
interest rates at zero-level at its upcoming policy meeting on
September 16-17. Meanwhile, some say that the Fed might wait until
the end of the year or longer to raise its interest rates.
However, some indicate that the Fed could lift rates at its next
meeting.
Traders remain cautious ahead of the U.S. employment report, due
on Friday, as the Federal Open Market Committee assesses the
economic data to find whether the economy is strong enough to
weather a rate hike.
Monday, the U.S. dollar showed mixed trading against its major
rivals. While the greenback, held steady against the yen, the euro
and the pound, it rose against the Swiss franc.
In the Asian trading now, the U.S. dollar fell to a 5-day low of
120.58 against the yen and a 4-day low of 1.1276 against the euro,
from yesterday's closing quotes of 121.21 and 1.1208, respectively.
If the greenback extends its downtrend, it is likely to find
support around 118.00 against the yen and 1.15 against the
euro.
Against the pound and the Swiss franc, the greenback dropped to
1.5404 and 0.9607 from yesterday's closing quotes of 1.5341 and
0.9669, respectively. The greenback may test support near 1.55
against the pound and 0.93 against the franc.
Against the Australia, the New Zealand and the Canadian dollars,
the greenback edged down to 0.7152, 0.6388 and 1.3123 from
yesterday's closing quotes of 0.7112, 0.6335 and 1.3138,
respectively. On the downside, 0.72 against the aussie, 0.66
against the kiwi and 1.29 against the loonie are seen as the next
support level for the greenback.
Looking ahead, manufacturing PMI reports for August from major
European economies, German unemployment rate for August, Bank of
England's U.K. mortgage approvals data for July and U.K. M3 money
supply data for July are due to be released in the European
session.
In the European session, Canada GDP data for second quarter,
Markit's final U.S. manufacturing PMI for August, the Institute for
Supply Management's manufacturing PMI for August and construction
spending data for July are slated for release.
At 12:00 pm ET, Swiss National Bank head Thomas Jordan addresses
a business gathering in Zurich. Subsequently, Federal Reserve Bank
of Boston President Eric Rosengren is expected to speak on the
economic outlook before the Forecasters Club of New York at 1:10 pm
ET.
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