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2018.11.2109:11:00UTC+00Dollar Falls Amid Rumors Of Fed Halting Rate Hike Cycle In Spring Next Year

The U.S. dollar was lower against its major counterparts in the European session on Wednesday, following a media report that the Federal Reserve is likely to halt its interest rate hikes in the spring of next year.

The Fed may examine ending its rate hike cycle as early as spring of 2019, according to a report from the MNI news agency.

Although a December hike in on cards, the debate would be more heated from March to June next year, it showed.

The currency was also weighed by disappointing U.S. durable goods orders data for October.

Data from the Commerce Department showed a much steeper than expected drop in new orders for U.S. durable goods in the month of October, primarily led a substantial decrease in orders for transportation equipment.

The Commerce Department said durable goods orders plunged by 4.4 percent in October following a revised 0.1 percent dip in September. Economists had expected orders to slump by 2.5 percent.

Data from the the Labor Department showed that first-time claims for U.S. unemployment benefits unexpectedly edged higher in the week ended November 17.

The report said initial jobless claims rose to 224,000, an increase of 3,000 from the previous week's upwardly revised level of 221,000. Economists had expected jobless claims to slip to 215,000.

The currency traded mixed against its major counterparts in the Asian session. While it fell against the euro and the pound, it held steady against the franc. Against the yen, it rose.

The greenback edged down to 0.9930 against the Swiss franc, from a high of 0.9956 touched at 6:00 am ET. The next possible support for the greenback is seen around the 0.97 mark.

Reversing from an early high of 1.1366 against the euro, the greenback weakened to 1.1418. On the downside, 1.16 is possibly seen as the next support level for the greenback.

After rising to a 5-day high of 1.2773 against the pound at 5:00 am ET, the greenback reversed direction with the pair trading at 1.2811. The greenback is seen finding support around the 1.30 mark.

Data from the Office for National Statistics showed that the UK budget deficit far exceeded expectations in October.

The public sector net borrowing, or PSNB, excluding state banks was GBP 8.8 billion in October, which was the highest for the month since 2015, said.

The greenback fell to 1.3270 against the loonie, 0.6841 against the kiwi and 0.7259 against the aussie, from its early high of 1.3317, weekly highs of 0.6782 and 0.7202, respectively. The greenback is likely to find support around 1.30 against the loonie, 0.70 against the kiwi and 0.74 against the aussie.

On the flip side, the greenback held steady against the yen, after having advanced to a 5-day high of 113.15 at 6:00 am ET. At yesterday's close, the pair was worth 112.75.

The University of Michigan's final consumer sentiment index for November, existing home sales and leading index for October are set for release shortly.



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