U.S. Dollar Weakens Against Most Majors
August 14 2018 - 06:02AM
RTTF2
The U.S. dollar fell against its most major counterparts in the
European session on Tuesday, as sentiment improved following a
recovery of Turkish lira after the country's central bank
introduced measures to boost liquidity in the market.
On Monday, Turkey's central bank announced a series of measures
to improve liquidity in the banking system and cut reserve
requirements to stabilize the lira.
The central bank cut the lira's reserve requirement ratio by 250
basis points for all maturity brackets and lowered reserve
requirement ratios for non-core FX liabilities by 400 basis points
for maturities up to three years to contain the currency
crisis.
Data from the Labor Department showed that U.S. import prices
came in unchanged in the month of July.
The Labor Department said import prices were unchanged in July
after edging down by a revised 0.1 percent in June.
Economists had expected import prices to inch up by 0.1 percent
compared to the 0.4 percent decrease originally reported for the
previous month.
The currency showed mixed trading against its major rivals in
the Asian session. While it rose against the yen and the franc, it
held steady against the euro. Against the pound, it dropped.
The greenback eased to 110.79 against the yen, after rising to a
4-day high of 111.15 at 3:05 am ET. On the downside, 109.00 is
likely seen as the next support for the greenback.
Preliminary figures from the Ministry of Economy, Trade and
Industry showed that Japan's industrial production decreased less
than initially estimated in June.
Industrial production dropped a seasonally-adjusted 1.8 percent
month-over-month in June, faster than the 0.2 percent fall in the
previous month. That was slower than the 2.1 percent decline in the
flash data.
The greenback dropped to 4-day lows of 0.6610 against the kiwi
and 1.3072 against the loonie, off its early highs of 0.6570 and
1.3136, respectively. The greenback is seen finding support around
0.67 against the kiwi and 1.28 against the loonie.
The greenback slipped to a 5-day low of 0.9901 against the
franc, off an early high of 0.9945. The next possible support for
the greenback is seen around the 0.97 region.
The greenback held steady against the euro, after having eased
from a high of 1.1380 touched at 5:00 am ET. At yesterday's close,
the pair was worth 1.1410.
Survey data from the Centre for European Economic Research
showed that Germany's economic confidence improved more than
expected in August.
The ZEW Indicator of Economic Sentiment climbed notably to -13.7
in August from -24.7 in July. On the flip side, the greenback
ticked up to 1.2772 against the pound, from a 4-day low of 1.2827
seen at 4:30 am ET. If the greenback rises further, 1.25 is likely
seen as its next resistance level.
Data from the Office for National Statistics showed that the UK
unemployment rate dropped to a new low in the second quarter.
The ILO jobless rate came in at 4 percent in the second quarter,
the lowest since February 1975. The rate was expected to remain
unchanged at 4.2 percent.
The greenback advanced to a 7-1/2-month high of 0.7252 against
the aussie at 4:45 am ET and held steady thereafter. The greenback
is poised to find resistance around the 0.70 level.
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