U.S. Dollar Falls Amid Rising Risk Appetite
13 February 2018 - 2:28PM
RTTF2
The U.S. dollar dropped against its key counterparts in the
Asian session on Tuesday amid rising risk appetite, as Asian stock
markets climbed following gains in Wall Street overnight for a
second straight session.
Markets are showing signs of stabilization following last week's
brutal selloff that was triggered by worries over rising interest
rates.
Investors closely await the U.S. consumer inflation data on
Wednesday to assess the likelihood for a faster pace of rate hike
by the Federal Reserve.
The Labor Department report is forecast to show prices rose at
an annual rate of 1.9 percent in January, down from 2.1 percent in
the previous month.
Other key U.S. data slated for release this week include the
retail sales and business inventories on Wednesday, weekly jobless
claims, producer price index, Empire State manufacturing survey,
industrial production and housing market index on Thursday,
followed by housing starts, import and export prices and consumer
sentiment on Friday.
The greenback slipped to 107.99 against the yen, a level unseen
since September 2017. If the greenback falls further, it may find
support around the 106.00 level.
Data from the Bank of Japan showed that Japan producer prices
picked up 0.3 percent on month in January.
That was in line with expectations and up from the downwardly
revised 0.1 percent gain in December.
Reversing from an early high of 0.9399 against the Swiss franc,
the greenback hit a 4-day low of 0.9357. The greenback is seen
finding support around the 0.92 area.
The greenback that closed Monday's deals at 1.2291 against the
euro fell to a 6-day low of 1.2325. The next likely downside target
for the greenback is seen around the 1.25 mark.
The greenback dropped to 1.3869 against the pound, from a high
of 1.3832 hit at 8:15 pm ET. On the downside, 1.43 is possibly seen
as the next support level for the greenback.
The greenback fell to a 6-day low of 0.7289 against the kiwi,
compared to 0.7262 hit late New York Monday. The greenback is
likely to find support around the 0.74 level.
The greenback ticked down to 1.2571 against the loonie, off its
early high of 1.2593. The greenback is likely to challenge support
around the 1.24 region.
Looking ahead, Swiss producer and import prices and U.K.
consumer and producer prices, all for January, as well as U.K.
house price index for December are set for release in the European
session.
At 8:00 am ET, Cleveland Fed President Loretta Mester speaks
about the economic outlook and monetary policy at the Dayton Area
Chamber of Commerce Government Affairs Breakfast.
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