Forex News: U.S. Dollar Falls Amid U.S. Growth Concerns

U.S. Dollar Falls Amid U.S. Growth Concerns

(RTTNews) - The U.S. dollar weakened against other major currencies in the European session on Wednesday, amid growing worries about slowing U.S. economic growth and the effects of recently imposed tariffs. Instead of being pro-growth and inflationary for the economy, as investors had previously predicted, they are expecting Trump's tariffs to slow down U.S. economic growth.

Markets are also cautious following the imposition of tariffs by U.S. in Canada, Mexico and China, and the retaliatory measures by China and Canada.

Investors were also reacting to comments from U.S. Commerce Secretary Howard Lutnick that President Donald Trump will "probably" announce a deal to reduce tariffs on Canada and Mexico.

In the European trading today, the U.S. dollar fell to near 4-month lows of 1.0722 against the euro and 1.2855 against the pound, from early highs of 1.0602 and 1.2768, respectively. If the greenback extends its downtrend, it is likely to find support around 1.09 against the euro and 1.31 against the pound.

The greenback slid to nearly a 3-month low of 0.8856 against the Swiss franc, from an early high of 0.8914. On the downside, 0.87 is seen as the next support level for the greenback.

The greenback dropped to 149.10 against the yen, from an early 2-day high of 150.18. The next possible downside target for the greenback is seen around the 146.00 region.

Against the Australia and the New Zealand dollars, the greenback slipped to 6-day lows of 0.6291 and 0.5685 from early highs of 0.6234 and 0.5638, respectively. The greenback may test support around 0.64 against the aussie and 0.58 against the kiwi.

Against the Canadian dollar, the greenback edged down to 1.4377 from an early low of 1.4450. On the downside, 1.41 is seen as the next support level for the greenback.

Looking ahead, U.S. MBA mortgage approvals data, U.S. and Canada PMI data for February, U.S. factory orders for January and U.S. EIA crude oil data are slated for release in the New York session.

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