U.S. Dollar Weakens Despite Yellen's Hawkish Remarks
August 26 2016 - 6:43AM
RTTF2
The U.S. dollar reversed from its recent highs and fell back
against its major counterparts in New York trading on Friday,
despite hawkish remarks from Federal Reserve Chairman Janet Yellen
hinting at the chances for another interest rate hike in coming
months.
"In light of the continued solid performance of the labor market
and our outlook for economic activity and inflation, I believe the
case for an increase in the federal funds rate has strengthened in
recent months," Yellen said in a speech prepared for delivery to
the Jackson Hole summit.
However, the Fed's decision "always depends on the degree to
which incoming data continues to confirm the Fed policy committee's
outlook."
Data from the Commerce Department showed that U.S. economic
activity grew slightly less than initially estimated in the second
quarter.
The report said gross domestic product increased by 1.1 percent
in the second quarter, reflecting a downward revision compared to
the originally reported 1.2 percent growth. The revision matched
economist estimates.
The greenback that fell upon the release of GDP data, turned in
mixed in a short while. The currency continued to be lower against
the yen and the euro, but advanced against the franc and the pound
in the course of the European session.
The greenback declined to 0.7377 against the kiwi, its weakest
since May 2015, from a high of 0.7290 hit at 5:00 pm ET. On the
downside, 0.76 is possibly seen as the next support level for the
greenback.
The greenback slid to weekly lows of 0.7690 versus aussie and
1.2836 against loonie, off its early high of 0.7608 and a 2-day
high of 1.2948, respectively. The greenback is seen finding support
around 0.80 against the aussie and 1.25 against the loonie.
The greenback fell to a 3-day low of 1.1327 against the euro and
a 2-day low of 100.11 against the yen, coming off from its previous
9-day high of 1.1241 and a 4-day high of 100.91, respectively. The
next possible support levels for the greenback are seen around 1.15
against the euro and 99.00 against the yen.
The greenback retreated to 1.3247 against the pound and 0.9648
against the franc, from its early 3-day high of 1.3142 and a 10-day
high of 0.9727, respectively. If the greenback extends slide, it
may challenge support around 1.35 against the pound and 0.95
against the franc.
US Dollar vs CAD (FX:USDCAD)
Forex Chart
From Mar 2024 to Apr 2024
US Dollar vs CAD (FX:USDCAD)
Forex Chart
From Apr 2023 to Apr 2024