U.S. Dollar Falls Ahead Of Fed Minutes
11 April 2018 - 4:42PM
RTTF2
The U.S. dollar slipped against its most major counterparts in
early European deals on Wednesday, as investors awaited U.S.
inflation data and the minutes from the latest Fed meeting for more
clues about policy outlook.
The U.S. Labor Department will release consumer prices for March
at 8:30 am ET. The inflation is expected to stagnate on a monthly
basis, compared to a 0.2 percent rise in February.
At 2 pm ET, the Fed releases minutes of its March 20-21 meeting,
the first under Chairman Jerome Powell.
At the meeting, the policy makers raised interest rates by 25
basis points and signaled two more rate hikes for this year,
dampening hopes for aggressive rate hike path.
Caution prevailed following reports that U.S. President Donald
Trump is considering more aggressive strike in Syria within the
next 48 hours.
Russia has threatened to shoot down any U.S. missiles fired at
neighboring Syria if the U.S. decides to strike Syrian bases in
response to a chemical attack.
The currency has been trading in a negative territory against
its major rivals in the Asian session, with the exception of the
franc.
The greenback dropped to 106.89 against the yen, from a high of
107.25 hit at 5:30 pm ET. The next possible support for the
greenback is seen around the 104.00 level.
Data from the Bank of Japan showed that Japan's producer prices
fell 0.1 percent on month in March.
That was in line with expectations following the upwardly
revised 0.1 percent increase in February.
The greenback fell to 1.2387 against the euro, its lowest since
March 28. The greenback is seen finding support around the 1.25
area.
The greenback that ended Tuesday's trading at 1.4174 against the
pound dropped to a new 2-week low of 1.4223. If the greenback falls
further, 1.44 is possibly seen as its support level.
Data from the Office for National Statistics showed that U.K.
industrial production grew at a slower pace on weak mining and
manufacturing output in February.
Industrial output edged up 0.1 percent month-on-month in
February, compared to January's 1.3 percent increase. Production
was expected to climb 0.4 percent.
On the flip side, the greenback climbed to a 2-day high of
0.9596 against the Swiss franc, compared to 0.9568 hit late New
York Tuesday. On the upside, 0.98 is likely seen as the next
resistance for the greenback.
Looking ahead, at 7:00 am ET, the European Central Bank
President Mario Draghi speaks at the Generation €uro Students'
Award Ceremony in Frankfurt.
In the New York session, U.S. CPI for March, FOMC minutes from
March 20-21 meeting and monthly budget statement are scheduled for
release.
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