Forex News: U.S. Dollar Falls Amid Fed Rate Cut Speculation

U.S. Dollar Falls Amid Fed Rate Cut Speculation

(RTTNews) - The U.S. dollar weakened against other major currencies in the Asian session on Wednesday, as traders speculate about an interest rate cut by the U.S. Fed next week.

Investor sentiments were boosted by gains in technology stocks which mirrored their peers on tech-heavy Nasdaq amid strong rebound by Bitcoin after it moved sharply lower on Monday.

Traders now look ahead to the release of payroll processor ADP's report on US private sector employment later in the day, which could impact the outlook for interest rates ahead of the Federal Reserve's monetary policy meeting next week.

Reports on U.S. service sector activity, personal income and spending and consumer sentiment may also attract attention in the coming days.

CME Group's FedWatch Tool is currently indicating an 89.4 percent chance the Fed will cut rates by another quarter point, up from 63.0 percent a month ago.

In the Asian trading today, the U.S. dollar fell to 2-day lows of 1.1648 against the euro, 1.3243 against the pound and 0.8014 against the Swiss franc, from yesterday's closing quotes of 1.1624, 1.3213 and 0.8029, respectively. If the greenback extends its downtrend, it is likely to find support around 1.17 against the euro, 1.33 against the pound and 0.79 against the franc.

Against the yen, the greenback edged down to 155.51 from Tuesday's closing value of 155.87. On the downside, 154.00 is seen as the next support level for the greenback.

Against the Australia and the New Zealand dollars, the greenback dropped to more than 1-month lows of 0.6585 and 0.5756 from yesterday's closing quotes of 0.6564 and 0.5737, respectively. The greenback is likely to find support near 0.66 against the aussie and 0.58 against the kiwi.

The greenback slipped to a 2-day low of 1.3963 against the Canadian dollar, from Tuesday's closing value of 1.3970. The next possible downside target for the greenback is seen around the 1.38 region.

Looking ahead, PMI reports from various European economies and U.K. for November and Eurozone PPI for October are due to be released in the European session.

In the New York session, U.S. MBA mortgage approvals data, U.S. ADP weekly employment data, U.S. export and import prices data for September, industrial production for September, U.S. and Canada S&P services PMI data for November and U.S. EIA crude oil data are slated for release.

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