U.S. Dollar Falls Amid Fed Rate Cut Optimism
November 19 2023 - 9:26PM
RTTF2
The U.S. dollar weakened against other major currencies in the
Asian session on Monday amid optimism that the U.S. Federal Reserve
may cut interest rates by a full percentage point by the end of
2024.
The soft U.S. labor market and inflation readings from last
week, boosted the traders' sentiments to bet on Fed's rate hike
pause. Some traders bet that the central bank could begin rate cut
by March 2024.
In the Middle East, the Israeli ambassador to the U.S. said he
is hopeful a deal for the release of a significant number of
hostages will be reached in the coming days.
In the Asian trading now, the U.S. dollar fell to nearly a
3-month low of 1.0936 against the euro and a 5-day low of 1.2496
against the pound, from Friday's closing quotes of 1.0907 and
1.2461, respectively. If the greenback extends its downtrend, it
may find support around 1.10 against the euro and 1.28 against the
pound.
Against the Swiss franc and the yen, the greenback dropped to
more than a 2-1/2-month low of 0.8831 and nearly a 1-1/2-month low
of 148.69 from last week's closing quotes of 0.8855 and 149.62,
respectively. The greenback may test support near 0.86 against the
franc and 146.00 against the yen.
The greenback slipped to a 4-day low of 1.3690 against the
Canadian dollar, from Friday's closing value of 1.3718. On the
downside, 1.34 is seen as the next support level for the
greenback.
Looking ahead, German PPI for October is slated for release at
2:00 am ET in the pre-European session.
In the European session, Eurozone construction output for
September is set to be published.
In the New York session, U.S. CB leading index for October is
slated for release.
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