U.S. Dollar Reverses From Early Highs Against Most Majors
May 20 2019 - 6:22AM
RTTF2
The U.S. dollar declined against its most major counterparts in
the European session on Monday, after strengthening in the previous
session on the back of strong economic data as well as continued
trade worries.
U.S.-China trade worries continued after Google suspended some
of its business with Chinese tech giant Huawei.
Google has cut Huawei off from business involving the transfer
of hardware, software and technical services, complying with an
order by President Donald Trump blocking the sale or transfer of
U.S. technology to Huawei.
The U.S. consumer sentiment hit a 15-year high in May on
improving confidence over the economy's outlook, data showed
Friday.
Investors await data on new and existing home sales and durable
goods orders as well as the minutes of the latest Federal Reserve
meeting this week for clues about the economy.
The currency was higher against its major rivals in the Asian
session, excepting the pound.
The greenback depreciated to a 4-day low of 1.0081 against the
franc, from a high of 1.0121 hit at 2:00 am ET. If the greenback
falls further, 0.99 is likely seen as its next support level.
The greenback edged lower to 109.81 against the yen, following
near a 2-week high of 110.31 seen at 9:00 pm ET. The greenback is
seen finding support around the 107.00 level.
Final data from the Ministry of Economy, Trade and Industry
showed that Japan's industrial production declined
less-than-estimated in March,.
Industrial production fell a seasonally adjusted 0.6 percent
month-on-month in March, smaller than the 0.9 percent decrease
initially estimated.
After rising to more than a 2-week high of 1.1151 against the
euro at 1:30 am ET, the greenback reversed direction with the pair
trading at 1.1165. The greenback is likely to test support around
the 1.13 region.
The greenback hovered at a 4-day low of 1.3423 against the
loonie, compared to 1.3462 hit late New York last week. Next key
support for the greenback is seen around the 1.32 level.
On the flip side, the greenback rose to 1.2721 against the
pound, after falling to 1.2757 at 4:00 am ET. The currency is
poised to target resistance around the 1.24 mark. Data from the
property website Rightmove showed that UK house prices increased
marginally in May.
House prices edged up 0.1 percent from the last year, reversing
a 0.1 percent drop in April. Meanwhile, asking price of a home in
London declined 2.5 percent annually to GBP 621,589.
In today's events, at 12:30 pm ET, the Bank of England Deputy
Governor Ben Broadbent will speak at Imperial College Business
School in London.
Federal Reserve Governor Richard Clarida will deliver a speech
about the Federal Reserve's policy strategy, tools, and
communication practices at an event hosted by the Federal Reserve
Bank of New York at 1:05 pm ET.
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