CURRENCIES: Dollar Extends Losses After Drop In Home Builder Index
20 November 2018 - 4:20AM
Dow Jones News
By Anneken Tappe, MarketWatch
Currency traders focus on Brexit, global growth
The U.S. dollar underperformed many of its major rivals on
Monday following a slump in home-builder sentiment.
Otherwise, major themes continued, with investors focusing on
the global growth slowdown and European political developments
The National Association of Home Builders monthly confidence
index dropped to 60
(http://www.marketwatch.com/story/home-builder-confidence-tumbles-the-most-since-2014-as-housing-headwinds-catch-up-2018-11-19)
in November, compared with 68 in the previous month, leading the
buck to extend its losses versus rivals. The greenback had already
traded rather muted earlier in the day, adding on from Friday's
weakness that came on the coattails of comments by Federal Reserve
Vice Chairman Richard Clarida
(http://www.marketwatch.com/story/british-pound-bounces-after-worst-day-in-more-than-2-years-2018-11-16).
In an interview with CNBC
(http://www.marketwatch.com/story/feds-no2-clairida-says-there-are-signs-global-growth-is-slowing-but-doesnt-think-rate-hikes-are-too-rapid-2018-11-16),
Clarida Friday offered a more dovish view on the Fed's monetary
policy normalization path, and warned of a slowing global economy.
Dallas Fed President Robert Kaplan also acknowledged global
slowing. Fed Chairman Jerome Powell also noted the headwinds abroad
during a speech last week.
Read:Markets think Powell 'blinked' in Dallas
(http://www.marketwatch.com/story/markets-think-powell-blinked-in-dallas-2018-11-19)
The buck continued its modest slide on Monday, with the ICE U.S.
Dollar Index down 0.3% at 96.192.
The New Zealand dollar was the worst performer among developed
market currencies, dropping to $0.6837 from 0.6877 late Friday in
New York, as the currency retraced its rally from late last week
that was helped by weakness in its U.S. rival.
In Europe, lingering political tensions remained a factor, with
traders focusing on developments surrounding Italy and British
pound traders watching for Brexit news.
One euro last bought $1.1451, little changed from $1.1418 late
Friday in New York.
Investors continue to focus on a possible party leadership
challenge to Prime Minister Theresa May. Around 20 letters from
Conservative members of parliament calling for a no-confidence vote
have been made public, with more expected to exist in private,
meaning that May is still not out of the woods yet. It would take
48 letters to trigger a vote. That said, no more cabinet
resignations have followed last week's flurry
(http://www.marketwatch.com/story/these-are-the-latest-resignations-from-the-uk-government-that-rattled-investors-2018-11-15).
Don't miss:Brexit turmoil: Here's what's at stake if U.K.'s May
faces a leadership challenge
(http://www.marketwatch.com/story/brexit-turmoil-heres-whats-at-stake-if-uks-may-faces-a-leadership-challenge-2018-11-16)
Sterling last fetched $1.2855, down slightly from $1.2833 late
Friday. The euro-sterling pair was up 0.1% at GBP0.8906.
Read:Here's how much Brexit turmoil might whack the British
pound, analysts predict
(http://www.marketwatch.com/story/heres-how-much-brexit-turmoil-might-whack-the-british-pound-analysts-predict-2018-11-15)
(END) Dow Jones Newswires
November 19, 2018 12:05 ET (17:05 GMT)
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