Forex News: U.S. Dollar Falls Amid Risk-on Mood

U.S. Dollar Falls Amid Risk-on Mood

(RTTNews) - The U.S. dollar weakened against other major currencies in the Asian session on Thursday amid increased risk-on sentiment, as some traders looked to pick up stocks at reduced levels following the recent sell-off. Traders also react to upbeat private U.S. economic data and growing expectations that the U.S. Supreme Court may reject the Trump administration's aggressive trade policy.

A report from payroll processor ADP showed private sector employment in the U.S. rebounded by more than expected in October and another report showed U.S. service sector activity returned to expansion in October.

With no official data on inflation and jobs available, markets and the U.S. Fed are left to rely on private economic reports. According to CME Group's FedWatch Tool, investors are betting on a 68.1% chance of a 25-basis-point interest rate cut at the upcoming December 9-10 Federal Reserve's meeting.

Crude oil prices fell as concerns about excess supply and lower demand compelled investors to refrain from big moves. West Texas Intermediate crude for December delivery was down $0.92 or 1.52 percent at $59.64 per barrel.

In the Asian trading today, the U.S. dollar fell to 2-day lows of 1.1511 against the euro and 1.3066 against the pound, from yesterday's closing quotes if 1.1492 and 1.3050, respectively. If the greenback extends its downtrend, it is likely to find support around 1.16 against the euro and 1.34 against the pound.

Against the yen and the Swiss franc, the greenback edged down to 153.80 and 0.8087 from Wednesday's closing quotes of 154.12 and 0.8103, respectively. The greenback may test support near 151.00 against the yen and 0.79 against the franc.

Against the Australia and the New Zealand dollars, the greenback dropped to 2-day lows of 0.6519 and 0.5669 from yesterday's closing quotes of 0.6506 and 0.5657, respectively. On the downside, 0.67 against the aussie and 0.58 against the kiwi are seen as the next support level for the greenback.

The greenback edged down to 1.4099 against the Canadian dollar, from yesterday's closing value of 1.4109. The next possible downside target for the greenback is seen around the 1.39 region.

Looking ahead, Eurozone and U.K. construction PMI for October and Eurozone retail sales for September are slated for release in the European session.

In the New York session, Canada Ivey PMI for October is due to be released.

At 7:00 am ET, the Bank of England will announce its latest policy decision. The BoE is expected to keep its policy rate at 4 percent.

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