U.S. Dollar Slides On Weak Economic Data
December 28 2017 - 12:06AM
RTTF2
The U.S. dollar fell against its major counterparts during early
European deals on Thursday, as an overnight data showed that U.S.
consumer confidence dropped in December driven by a less optimistic
outlook about near-term conditions.
Data from the Conference Board showed that the consumer
confidence index slumped to 122.1 in December from a downwardly
revised 128.6 in November.
Economists had expected the consumer confidence index to edge
down to 128.0.
Investors await initial jobless claims for the week ended
December 23, preliminary readings on U.S. wholesale and retail
inventories as well as the goods trade balance for the month of
November later in the day for more direction.
Markets digested the impact of the Republican's tax plan, which
would add to federal budget deficit.
The currency has been trading in a negative territory in the
Asian session.
The greenback hit more than a 4-week low of 1.1947 against the
euro and more than a 3-week low of 0.9798 against the franc, from
its early highs of 1.1886 and 0.9863, respectively. The greenback
is seen finding support around 1.21 versus the euro and 0.96
against the franc.
Reversing from early highs of 113.34 against the yen and 1.3395
against the pound, the greenback dropped to a 9-day low of 112.66
and a 2-week low of 1.3454, respectively. Continuation of the
greenback's downtrend may see it challenging support around 111.00
against the yen and 1.36 against the pound.
The greenback weakened to a 2-1/2-month low of 0.7099 against
the kiwi, more than 2-month lows of 1.2606 against the loonie and
0.7808 against the aussie, reversing from its prior highs of
0.7054, 1.2661 and 0.7765, respectively. The next possible support
for the greenback is seen around 0.72 against the kiwi, 1.25
against the loonie and 0.79 against the aussie, respectively.
Looking ahead, U.S. weekly jobless claims for the week ended
December 23, wholesale inventories for November and Chicago PMI for
December are set for release in the New York session.
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