FOREX TradingCharts.com

Forex News: Dollar Drops On Fed Rate Cut Hopes

Dollar Drops On Fed Rate Cut Hopes

03/02/2020 - 09:55:00 (RTTNews)

(RTTNews) - The U.S. dollar came under pressure against its most major rivals in the European trading session on Monday, as investors are pricing in a Fed rate cut at March policy meeting to contain the economic fallout from the virus outbreak.

Expectations of a rate cut intensified following Fed Chairman Jerome Powell's statement that the central bank would "act as appropriate" to support the economy.

"The coronavirus poses evolving risks to economic activity. The Federal Reserve is closely monitoring developments and their implications for the economic outlook. We will use our tools and act as appropriate to support the economy," Powell said on Friday.

The market is now pricing in a rate cut at the next Fed meeting on March 18.

Investors cheered indications from other global central banks to support their economies in response to the coronavirus scare.

The Bank of Japan signaled today that it will make every effort to ensure stability in financial markets roiled by the coronavirus outbreak.

The Bank of England said it would take all necessary steps to maintain market stability.

The greenback fell to 1.1165 against the euro, its weakest since January 16. The currency is poised to challenge support around the 1.13 mark.

Final survey data from IHS Markit showed that Eurozone manufacturing activity contracted only marginally and at the slowest pace for the past year in February.

The factory Purchasing Managers' Index rose to 49.2 in February from 47.9 in January. This was slightly above the flash score of 49.1.

The greenback dropped back to 107.52 against the yen, not far from near a 5-month low of 107.36 seen in the Asian session. The greenback is seen finding support around the 106.00 mark.

Bank of Japan Governor Haruhiko Kuroda said the bank will ensure stability in the financial markets via asset purchases.

"The Bank of Japan will closely monitor future developments, and will strive to provide ample liquidity and ensure stability in financial markets through appropriate market operations and asset purchases," he said in a statement.

The greenback declined to 0.9546 against the franc, a level unseen since September 2018. Next key support for the greenback is likely seen around the 0.94 level.

The greenback edged down to 0.6279 against the kiwi and 0.6568 against the aussie and held steady thereafter. The greenback is likely to face support around 0.645 against the kiwi and 0.70 against the aussie.

In contrast, the greenback rose to 1.2746 against the pound from last week's closing value of 1.2823. The next possible resistance for the greenback is seen around the 1.24 level.

Survey data from IHS Markit showed that the UK manufacturing sector expanded at the fastest pace in ten months in February as domestic demand continued to recover on the back of reduced political uncertainty.

The IHS Markit/Chartered Institute of Procurement & Supply Purchasing Managers' Index rose to 51.7 in February from 50.0 in January. However, this was below the earlier flash estimate of 51.9.

The greenback recovered to 1.3390 against the loonie, from a 5-day low of 1.3315 hit at 3:30 am ET. The currency is likely to face resistance around the 1.35 region, if it gains again.

The U.S. ISM manufacturing index for February and construction spending for January are set for release in the New York session.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2020 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT FOREX and ECONOMIC NEWS STORIES


Pound Appreciates As Virus Spread Slows (12 hr(s), 21 min(s), 46 sec(s) ago)
(RTTNews) - The pound strengthened against its major counterparts in the European session on Monda ...Full Story»

Euro Ticks Down After Eurozone Sentix Investor Confidence Index (15 hr(s), 57 min(s), 46 sec(s) ago)
(RTTNews) - At 4.30 am ET Monday, Eurozone Sentix investor confidence data has been released. The ...Full Story»

Pound Little Changed After UK Construction PMI Data (16 hr(s), 0 min(s),46 sec(s) ago)
(RTTNews) - At 4.30 am ET Monday, UK Markit/CIPS construction PMI data has been released. Aft ...Full Story»

Pound Climbs Ahead Of UK Construction PMI Data (16 hr(s), 06 min(s), 46 sec(s) ago)
(RTTNews) - At 4.30 am ET Monday, UK Markit/CIPS construction PMI data is due. Economists forecast ...Full Story»

Euro Mixed Ahead Of Eurozone Sentix Investor Confidence Index (16 hr(s), 09 min(s), 46 sec(s) ago)
(RTTNews) - At 4.30 am ET Monday, Eurozone Sentix investor confidence data is due. The sentiment i ...Full Story»

Australian, NZ Dollars Rise As Virus Fears Ease (16 hr(s), 39 min(s), 46 sec(s) ago)
(RTTNews) - The Australian and NZ dollars moved up against their major counterparts in the Asian s ...Full Story»

Euro Little Changed After German Factory Orders (18 hr(s), 30 min(s), 46 sec(s) ago)
(RTTNews) - At 2.00 am ET Monday, Destatis has released Germany's factory orders data for Febr ...Full Story»

Euro Rises Ahead Of German Factory Orders (18 hr(s), 39 min(s), 45 sec(s) ago)
(RTTNews) - At 2.00 am ET Monday, Destatis is scheduled to issue Germany's factory orders data ...Full Story»

Search

FOREX NEWS

Pound Appreciates As Virus Spread Slows

04/06/2020 - 08:14 AM (RTTNews)
(RTTNews) - The pound strengthened against its major counterparts in the European session on Monda ...Full Story>>

Euro Ticks Down After Eurozone Sentix Investor Confidence Index

04/06/2020 - 04:36 AM (RTTNews)
(RTTNews) - At 4.30 am ET Monday, Eurozone Sentix investor confidence data has been released. The ...Full Story>>

Pound Little Changed After UK Construction PMI Data

04/06/2020 - 04:34 AM (RTTNews)
(RTTNews) - At 4.30 am ET Monday, UK Markit/CIPS construction PMI data has been released. Aft ...Full Story>>

Pound Climbs Ahead Of UK Construction PMI Data

04/06/2020 - 04:28 AM (RTTNews)
(RTTNews) - At 4.30 am ET Monday, UK Markit/CIPS construction PMI data is due. Economists forecast ...Full Story>>

Euro Mixed Ahead Of Eurozone Sentix Investor Confidence Index

04/06/2020 - 04:25 AM (RTTNews)
(RTTNews) - At 4.30 am ET Monday, Eurozone Sentix investor confidence data is due. The sentiment i ...Full Story>>
Copyright © 2020. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.