U.S. Dollar Trades Lower On Trump Worries
The U.S. dollar traded lower against its most major counterparts
in the European session on Thursday, as mounting political turmoil
in Washington stoked worries over the future of U.S. President
Donald Trump and his stimulus measures.
News of Trump's request to drop an investigation into Russian
ties with Washington raised speculation he had meddled with the FBI
investigation, with a Democratic lawmaker calling for his
The Trump administration appointed former FBI Director Robert
Mueller as a special counsel to oversee the federal investigation
into Russia's involvement in the U.S. presidential election last
With fears mounting over the future of Trump's presidency,
traders doubt about the implementation of agenda of tax cuts and
In economic front, data from the Labor Department showed that
U.S. unemployment benefits dropped unexpectedly in the week ended
The report said initial jobless claims edged down to 232,000, a
decrease of 4,000 from the previous week's unrevised level of
236,000. Economists had expected jobless claims to rise to
The greenback rebounded modestly against its major rivals in the
The greenback slid to near an 8-month low of 1.3048 against the
pound, and held steady thereafter. The pair finished yesterday's
trading at 1.2970.
Figures from the Office for National Statistics showed that UK
retail sales recovered at a faster than expected pace in April.
Retail sales volume including auto fuel grew 2.3 percent
month-on-month, reversing a 1.4 percent drop in March.
The greenback fell to 0.9764 against the Swiss franc, a level
unseen since November 2016. The greenback is seen finding support
around the 0.96 mark.
Swiss National Bank Chairman Thomas Jordan said that the Swiss
franc remains clearly overvalued despite the positive results from
the ultra-loose monetary policy that includes negative interest
rates and currency market interventions by the central bank.
While the currency remains significantly overvalued, the
expansive monetary policy has been able to stem further
appreciation, especially during times of high uncertainty following
the 'Bexit' vote in the UK and ahead of the presidential election
in France, Jordan said in an interview to the Swiss newspaper
Corriere Del Ticino.
The greenback weakened to more than a 3-week low of 110.24
against the yen and traded sideways in subsequent deals. The pair
was valued at 110.80 when it closed Wednesday's deals.
Preliminary data from the Cabinet Office showed that Japan's
gross domestic product gained 0.5 percent on quarter in the first
three months of 2017.
That was in line with expectations and up from 0.3 percent in
the previous three months.
On the flip side, the greenback reversed from an early more than
6-month low of 1.1172 against the euro and edged up to 1.1108. If
the greenback extends rise, 1.10 is likely seen as its next
U.S. leading indicators for April are slated for release
The European Central Bank President Mario Draghi speaks at the
Tel Aviv University in Tel Aviv, Israel, at 1:00 pm ET.
Cleveland Fed President Loretta Mester speaks on economy and
monetary policy before the Economic Club of Minnesota at 1:15 pm
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