U.S. Dollar Weakens Ahead Of Powell's Speech
August 20 2024 - 9:54AM
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The U.S. dollar moved down against its major counterparts in the
New York session on Tuesday, as investors await the Federal
Reserve's annual Jackson Hole Economic Symposium, where Chair
Jerome Powell is scheduled to deliver a speech on Friday.
Growing expectations of an interest rate cut by the Fed at its
September meeting also weighed on the currency.
The minutes from the Fed's July meeting, which are due to be
released on Wednesday, could shed more clues about the likelihood
of a rate cut next month.
According to CME Group's FedWatch Tool, there is a 73.5 percent
of a quarter point rate cut next month and a 26.5 percent chance of
a half point rate cut.
Treasury yields fell, with the yield on the benchmark ten-year
note falling to 3.82 percent.
The greenback fell to near an 8-month low of 1.1116 against the
euro, more than 1-year low of 1.3055 against the pound and near a
2-week low of 0.8565 against the franc, off its early highs of
1.1071, 1.2974 and 0.8630, respectively. The greenback is seen
finding support around 1.13 against the euro, 1.33 against the
pound and 0.84 against the franc.
The greenback declined to near a 5-week low of 0.6747 against
the aussie and a 1-1/2-month low of 0.6153 against the kiwi, from
its early highs of 0.6713 and 0.6109, respectively. The currency is
poised to challenge support around 0.70 against the aussie and 0.63
against the kiwi.
The greenback reached as low as 145.40 against the yen. If the
currency falls further, it is likely to test support around the
140.5 region.
Meanwhile, the greenback recovered to 1.3640 against the loonie,
reversing from an early nearly 6-week low of 1.3605. The greenback
is likely to locate resistance around the 1.41 level.
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