U.S. Dollar Falls On Fed Tapering Delay Expectations
September 15 2021 - 3:41AM
RTTF2
The U.S. dollar came under pressure in the European session on
Wednesday, as hopes for an immediate Fed tapering announcement
lessened after softer-than-expected U.S. inflation data for
August.
U.S. consumer prices rose 0.3 percent from July and core
inflation edged up just 0.1 percent, reflecting the Fed's view that
price pressures could be transitory.
The data pushed back expectations for the Fed's tapering of the
asset purchase program in the near term.
The Federal Reserve's two-day monetary policy meeting is due
next week. Investors hope that policymakers could delay a decision
on tapering in the wake of soft data, Delta worries and slowing
global growth.
Today's key economic data include U.S. import and export prices,
industrial production and New York Fed's empire manufacturing
survey.
The greenback declined to 1.1832 against the euro and 1.3843
against the pound, off its prior 2-day high of 1.1799 and a 6-day
high of 1.3793, respectively. The greenback is poised to target
support around 1.20 against the euro and 1.40 against the
pound.
The greenback retreated from its early highs of 0.9205 against
the franc and 109.74 against the yen, weakening to a 5-day low of
0.9164 and a fresh 4-week low of 109.22, respectively. Immediate
support is seen near 0.90 against the franc and 108 against the
yen.
The greenback eased off to 0.7109 against the kiwi, 0.7337
against the aussie and 1.2666 against the loonie, after rising to
near a 2-week high of 0.7073, fresh 2-week high of 0.7301 and a
6-day high of 1.2709, respectively in early trades. The greenback
is likely to test support around 0.73 against the kiwi, 0.75
against the aussie and 1.25 against the loonie.
Looking ahead, Canada CPI, U.S. import and export prices and
industrial production, all for August, and New York Fed's empire
manufacturing survey for September are set for release in the New
York session.
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