U.S. Dollar Rebounds From Tuesday's Weakness
September 25 2019 - 06:02AM
RTTF2
The U.S. dollar strengthened against its major counterparts in
the European session on Wednesday, after falling on the impeachment
news against U.S. President Donald Trump yesterday.
House Speaker Nancy Pelosi's announcement that Democrats would
launch a formal impeachment inquiry into President Donald Trump
sent the currency lower on Tuesday.
The impeachment proceedings came in the wake of allegations that
Trump had pressured Ukraine's government to investigate Democratic
rival Joe Biden.
Trump tweeted that he would release the transcript of the phone
call to the Ukrainian President.
Democrats require two-thirds of Senators to convict Trump
following impeachment inquiry, which is a tough task in the
Republican-controlled Senate.
The currency has been trading modestly higher against its major
opponents in the previous session.
The greenback edged up to 107.55 against the yen, from a low of
106.99 hit at 5:00 pm ET. On the upside, 110.00 is possibly seen as
the next resistance for the greenback.
Data from the Bank of Japan showed that producer prices in Japan
were unchanged in August - in line with expectations following the
upwardly revised 0.2 percent increase in July.
On a yearly basis, producer prices were up 0.6 percent -
exceeding forecasts for 0.5 percent but unchanged from the July
reading following an upward revision from 0.5 percent.
The greenback reversed from its early low of 0.9850 against the
franc, rising to 0.9879. The greenback is likely to find resistance
around the 1.00 level.
Reversing from its early lows of 1.1023 against the euro and
1.3235 against the loonie, the greenback appreciated to 2-day highs
of 1.0977 and 1.3235, respectively. The next possible resistance
for the greenback is seen around 1.08 against the euro and 1.35
against the loonie.
The greenback strengthened to near a 2-week high of 1.2372
against the pound and a fresh 3-week high of 0.6750 against the
aussie, off its previous lows of 1.2496 and 0.6804, respectively.
The greenback is poised to find resistance around 1.21 against the
pound and 0.625 against the aussie.
Having declined to a 1-week low of 0.6348 against the kiwi at
10:30 pm ET, the greenback bounced off and rose to a 2-day high of
0.6285. Next key resistance for the greenback is seen around the
0.60 level.
New Zealand's central bank left its key interest rate unchanged
after cutting the rate by 50 basis points in August.
The Monetary Policy Committee of Reserve Bank of New Zealand
headed by Adrian Orr decided to hold the Official Cash Rate at 1.0
percent.
The U.S. new home sales for August will be released at 10:00 am
ET.
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