U.S. Dollar Falls Amid Rate Cut Expectations
04 June 2024 - 1:26PM
RTTF2
The U.S. dollar weakened against other major currencies in the
Asian session on Tuesday, as traders await the chance of an earlier
Federal Reserve interest rate cuts due to signs of a slowing U.S.
economy.
Traders also await cues from a slew of central bank meetings,
with the European Central Bank and the Bank of Canada both expected
to cut rates this week ahead of next week's FOMC meeting, which
concludes on June 12.
After the release of weak U.S. manufacturing and construction
spending data, investors now await the upcoming job data for
indications of economic strain.
In the Asian trading today, the U.S. dollar fell to 2-1/2-month
lows of 1.0916 against the euro and 0.8943 against the Swiss franc,
from yesterday's closing quotes of 1.0904 and 0.8957, respectively.
If the greenback extends its downtrend, it is likely to find
support around 1.10 against the euro and 0.87 against the franc.
Against the pound and the yen, the greenback slid to nearly a
3-month low of 1.2818 and more than a 2-week low of 155.80 from
Monday's closing quotes of 1.2807 and 156.03, respectively. The
greenback may test support near 1.29 against the pound and 152.00
against the yen.
The greenback slipped to more than a 2-week low of 0.6699
against the Australian dollar and nearly a 3-month low of 0.6198
against the NZ dollar, from yesterday's closing value of 0.6689 and
0.6198, respectively. The next possible downside target for the
greenback is seen around 0.67 against the aussie and 0.62 against
the kiwi.
Against the Canadian dollar, the greenback edged down to 1.3619
from Monday's closing value of 1.3627. On the downside, 1.37 is
seen as the next support level for the greenback.
Looking ahead, Germany's unemployment data for May and Eurozone
consumer inflation expectation for April are due to be released in
the European session.
In the New York session, U.S. logistics managers index for May,
U.S. factory orders for April and U.S. Redbook report are slated
for release.
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