Dollar Drops Against Majors; Fed Speeches In Focus
September 20 2020 - 11:58PM
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The U.S. dollar fell against its major opponents in the Asian
session on Monday, as investors await a slew of Fed speeches
including Chairman Jerome Powell for clues on monetary policy.
Powell and Treasury Secretary Steven Mnuchin will speak before
the House Financial Services Committee on the CARES Act on
Tuesday.
Powell is likely to be quizzed on the forward guidance for
interest rates, which suggests that rates would remain lower for
longer.
Speeches by Fed members Lael Brainard, Charles Evans, Raphael
Bostic, James Bullard, Mary Daly and John Williams are also
scheduled this week.
Key economic data include existing home sales on Tuesday and
home prices on Wednesday. The attention will then shift to new home
sales on Thursday and durable goods orders on Friday.
Asian stock markets are mostly lower following the decline on
Wall Street on Friday, reflecting continued weakness among
technology stocks and the lack of progress on a U.S. stimulus
package. Worries about the global economic recovery and the surge
in coronavirus cases across Europe also weighed on the markets.
The greenback dropped to 1.2967 against the pound, after rising
to a session's high of 1.2913 at 5:00 pm ET. The greenback may find
support around the 1.31 level.
The greenback was trading lower against the franc, at 0.9095.
This followed a 4-day high of 0.9115 logged at 8:00 pm ET. The next
possible support for the greenback is seen around the 0.88
level.
The greenback declined to a 5-day low of 1.1872 against the euro
from Friday's closing value of 1.1837. The greenback is poised to
find support around the 1.20 level.
The U.S. currency retreated to 1.3171 against the loonie and
0.7324 against the aussie, from its prior 4-day highs of 1.3209 and
0.7283, respectively. The greenback is seen finding support around
1.29 against the loonie and 0.75 against the aussie.
The greenback edged down to 0.6778 against the kiwi and held
steady thereafter. If the greenback falls further, 0.70 is possibly
seen as its next support level.
The greenback depreciated to 104.07 against the yen, its lowest
level since March 9. On the downside, 100 is possibly seen as its
next support level.
Looking ahead, Canada new housing price index for August will be
featured in the New York session.
At 10:00 am ET, Federal Reserve Chair Jerome Powell will speak
about rule-making for the Community Reinvestment Act, via
satellite.
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