U.S. Dollar Falls On Powell's Comments
November 28 2018 - 9:57PM
RTTF2
The U.S. dollar drifted lower against its major opponents in
late Asian deals on Thursday, following remarks from Federal
Reserve Chairman Jerome Powell suggesting the possibility for a
moderation in the pace of policy tightening for next year.
Speaking to the Economic Club of New York, Powell said that the
central bank's base interest rate was "just below" estimates of a
"neutral" level, where it neither stimulate nor cool the
economy.
"Interest rates are still low by historical standards, and they
remain just below the broad range of estimates of the level that
would be neutral for the economy--that is, neither speeding up nor
slowing down growth," Powell said.
Powell's remarks came on the heels of criticism by President
Donald Trump, who warned the Fed Chair for rate hikes.
The greenback slipped to 3-day lows of 113.21 against the yen
and 1.2850 against the pound, from its early highs of 113.68 and
1.2819, respectively. The greenback is likely to find support
around 112.00 against the yen and 1.30 against the pound.
Reversing from its early highs of 0.9939 against the franc and
1.1363 against the euro, the greenback fell to a 9-day low of
0.9918 and a 6-day low of 1.1392, respectively. The next possible
support for the greenback is seen around 0.97 against the franc and
1.15 against the euro.
The greenback pared gains to 1.3262 against the loonie, 0.7322
against the aussie and 0.6873 against the kiwi, from its early
highs of 1.3287, 0.7295 and 0.6838, respectively. If the greenback
slides further, it may find support around 1.30 against the loonie,
0.75 against the aussie and 0.70 against the kiwi.
Looking ahead, German jobless rate and Eurozone economic
confidence index for November as well as U.K. mortgage approvals
and M4 money supply for October are due in the European
session.
At 8:00 am ET, German preliminary CPI for November is scheduled
for release.
U.S. weekly jobless claims for the week ended November 24,
pending home sales and personal income and spending data for
October will be out in the New York session.
The Federal Reserve releases minutes from the November 7-8
meeting at 2:00 pm ET.
US Dollar vs CAD (FX:USDCAD)
Forex Chart
From Mar 2024 to Apr 2024
US Dollar vs CAD (FX:USDCAD)
Forex Chart
From Apr 2023 to Apr 2024