U.S. Dollar Slides Against Majors
February 10 2016 - 8:28PM
RTTF2
The U.S. dollar continued to be weaker against its major rivals
in the Asian session on Thursday, after U.S. Federal Reserve Chair
Janet Yellen acknowledged financial conditions have recently become
less supportive of growth, which could delay raising interest
rate.
In her semi-annual testimony before the House Financial
Services, Yellen stressed that monetary policy is not on a preset
course and reiterated the oft-repeated statement that the path of
the federal funds rate will depend on incoming data.
Reflecting the outlook, Yellen said the Fed expects to raise
interest rates only gradually, leading to a moderate expansion in
economic activity in the coming years.
The U.S. dollar showed mixed trading against its major rivals on
Wednesday. While the U.S. dollar fell against the pound and the
yen, it rose against the euro. Against the Swiss franc, the
greenback held steady.
In the Asian trading, the U.S. dollar fell to a 16-month low of
112.53 against the yen, from yesterday's closing value of 113.32.
The greenback is likely to find support around the 111.00 area.
Against the euro and the Swiss franc, the greenback dropped to
2-day lows of 1.1319 and 0.9704 from yesterday's closing quotes of
1.1288 and 0.9732, respectively. If the greenback extends its
downtrend, it is likely to find support around 1.14 against the
euro and 0.96 against the franc.
Against the Australian and the New Zealand dollars, the
greenback slid to 6-day lows of 0.7153 and 0.6734 from yesterday's
closing quotes of 0.7094 and 0.6683, respectively. The greenback
may test support near 0.72 against the aussie and 0.68 against the
kiwi.
The greenback edged down to 1.4563 against the pound and 1.3883
against the Canadian dollar, from yesterday's closing quotes of
1.4522 and 1.3922, respectively. On the downside, 1.47 against the
pound and 1.36 against the loonie are seen as the next support
levels for the greenback.
Looking ahead, Swiss CPI data for January is due to be released
at 3:15 am ET.
At 6:30 am ET, Bank of England deputy governors Jon Cunliffe and
Andrew Bailey will appear at the Lords committee on euro zone
financial system in London.
In the New York session, U.S. weekly jobless claims for the week
ended February 6 and Canada new housing price index for December
are due to be released.
At 10:00 am ET, Federal Reserve Chair Janet Yellen will testify
on the Semiannual Monetary Policy Report before the Senate Banking
Committee in Washington DC.
Eurozone finance ministers will meet in Brussels later in the
day.
The Chinese market continues to remain closed in observance of
the week-long Golden Week holidays and the Japanese banks are
closed in observance of the National Foundation Day holiday.
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