U.S. Dollar Declines Against Majors
04:40, 21st October 2014
(RTTNews) - The U.S. dollar fell against its major counterparts on Tuesday, as traders speculate that soft global growth may cause the Federal Reserve to delay the timing of interest rate hike.
Although the central bank is expected to wind down its quantitative easing program completely at its October 28-29 meeting, the interest rates will be kept at near zero well into 2015.
The central bank expressed concerned recently that slowdown in growth and deflationary pressures around the world may dampen U.S. recovery.
Traders are pricing in the first Fed rate hike to be in the second half of 2015.
The U.S. annual inflation is expected to come in at 1.6 percent in September, down from the central bank's inflation goal of around 2 percent. The figures are due on Wednesday. CPI numbers are closely observed by the Fed as an indicator of overall health of the U.S. economy.
The greenback slipped to 1.6183 against the pound, its lowest since October 9. If the greenback extends slide, 1.63 is seen as its next support level.
The greenback that closed yesterday's deals at 106.93 against the yen weakened to a 2-day low of 106.24. On the downside, 105.00 is likely seen as the greenback's next support level.
The greenback fell to 5-day lows of 0.9397 against the franc and 1.2839 against the euro, compared to Monday's closing values of 0.9424 and 1.2797, respectively. The next possible support for the greenback lies around 0.93 against the franc and 1.29 against the euro.
Reversing from an early multi-day high of 1.1295 against the loonie, the greenback dropped to a 2-day low of 1.1243. Continuation of the greenback downtrend may push the dollar down to a support around the 1.115 area.
The greenback fell to a 5-day low of 0.8827 against the aussie, while hitting 0.8034 against the NZ dollar,its lowest since September 25. The greenback may possibly find support around 0.885 against the aussie and 0.81 against the kiwi
At 10:00 am ET, U.S. existing home sales for September are due.
Copyright(c) 2024 RTTNews.com, Inc. All Rights Reserved