U.S. Dollar Continues Decline On Risk Appetite
July 19 2012 - 12:48AM
RTTF2
The U.S. dollar extended its New York session's decline against
other major currencies in early Asian trading on Thursday amid
improved market sentiment.
Risk appetite improved after data showing U.S. housing starts
jumped to the highest level in almost four years in June. Strong
corporate earnings from U.S. bellwethers and the Federal Reserve's
commitment to take new steps to support the economy if necessary
also cheered investors.
The nation's top central banker on Wednesday warned lawmakers
that they may push the U.S. economy into recession unless they back
away from an impending "fiscal cliff."
The fragile recovery, already showing obvious signs of weakness,
will be severely damaged by spending cuts and tax increases that
will automatically kick in at the start of 2013. Congress must act
now to restore confidence amid a worrisome drop in business
spending and new hiring, he added.
The greenback fell to 0.9771 against the franc and 1.5669
against the pound with 0.97 and 1.57 seen as the next downside
target levels, respectively. The greenback ended yesterday's deals
at 0.9780 against the franc and 1.5656 against the pound.
Against the European currency, the greenback that closed
Wednesday's deals at 1.2285 slipped to as low as 1.2302. On the
downside, the greenback may target the 1.235 level.
The greenback dropped to 78.48 against the yen, its weakest
level since June 5. On the downside, 78.00 is seen as the next
target level for the greenback. The pair ended Wednesday's deals at
78.82.
The U.S. currency declined to a 2-week low of 0.8021 against the
NZ dollar and a 2-1/2-month low of 1.0400 against the Australian
dollar and the next downside target level for the greenback is seen
at 0.805 and 1.045, respectively. At yesterday's close, the
kiwi-greenback and the aussie-greenback pairs traded at 0.8006 and
1.0365, respectively.
Against its Canadian counterpart, the greenback slipped to
1.0092 for the first time since May 16. If the greenback weakens
further, it may target the 1.005 level. The greenback finished
yesterday's trading at 1.0104 against the loonie.
In the European session, Swiss trade data for June, Eurozone
current account data for May and U.K. retail sales for June are
due.
Canada wholesale sales for May, U.S. weekly jobless claims for
the week ended July 14, existing home sales data for June, results
of the Philadelphia Federal Reserve's manufacturing survey for July
and leading economic indicators index for June are scheduled for
release in the New York morning session.
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