empty
 
 

2019.06.2002:40:00UTC+00U.S. Dollar Lower As Fed Hints At Rate Cut

The U.S. dollar fell against its major counterparts in the Asian session on Thursday, after the Fed left its interest rates unchanged and signaled the possibility of rate cuts amid trade tensions and soft inflation.

The Fed asserted that it will "act as appropriate" to sustain the U.S. economic expansion amid increasing uncertainties about the outlook for the economy.

The central bank omitted its reference to remaining "patient" when determining future changes to interest rates.

In his post-meeting press conference, Fed Chairman Powell said, "Many participants believe that some cut to the fed funds rate would be appropriate in the scenario they see as most likely."

CME Group's FedWatch Tool currently indicates an 85.2 percent chance the Fed will cut rates by 25 basis points at its next meeting at the end of July.

The greenback fell to a weekly low of 1.2689 against the pound and a 6-day low of 1.1273 against the euro, off its early highs of 1.2629 and 1.1226, respectively. The next possible support for the greenback is seen around 1.28 against the pound and 1.14 against the euro.

Reversing from its early highs of 108.14 against the yen and 0.9944 against the franc, the greenback declined to a 5-1/2-month low of 107.55 and a 9-day low of 0.9897, respectively. On the downside, 106.00 and 0.96 are possibly seen as the next support levels for the greenback against the yen and the franc, respectively.

The greenback slipped to a 3-1/2-month low of 1.3234 against the loonie and a weekly low of 0.6582 against the kiwi, pulling back from its previous highs of 1.3286 and 0.6534, respectively. If the greenback falls further, 1.30 and 0.68 are likely seen as its next possible support levels against the loonie and the kiwi, respectively.

The greenback edged lower to 0.6907 against the aussie, from a high of 0.6878 set at 5:00 pm ET. The greenback is seen finding support around the 1.30 level.

Looking ahead, U.K. retail sales for May will be out in the European session.

The Bank of England's monetary policy decision is due at 7:00 am ET. The bank is expected to leave rates unchanged at 0.75 percent and asset purchase target at GBP 435 billion.

The U.S. weekly jobless claims for the week ended June 15 and leading index for May will be released in the New York session.

At 10:00 am ET, Eurozone flash consumer sentiment index for June is set for release.

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS


Can't speak right now?
Ask your question in the chat.
Widget callback