U.S. Dollar Falls Ahead Of Yellen's Speech
The U.S. dollar weakened against its most major counterparts in
European trading on Tuesday, as investors await testimony by U.S.
Treasury Secretary nominee Janet Yellen that is expected to address
the case for fiscal stimulus to support the economy from the
Yellen is likely to urge lawmakers to "act big" with the $1.9
trillion fiscal stimulus plan.
U.S. risks more painful recession without further financial aid
and long-term scarring of the economy later, according to a copy of
her prepared remarks.
Optimism about China's economy and strong earnings reports
underpinned risk sentiment.
The inauguration of President-elect Joe Biden is due on
Wednesday. Biden has set an ambitious goal of 100 million Covid
vaccinations and mandating everyone to wear a mask to address the
pandemic in his first 100 days in office.
The greenback dropped to a 4-day low of 1.3627 versus the pound
from Monday's closing value of 1.3585. If the dollar falls further,
it may find support around the 1.42 level.
The greenback was down versus the euro, at a 4-day low of
1.2137. The pair had closed yesterday's deals at 1.2075. On the
downside, 1.24 is possibly seen as its next support level.
Survey data from the ZEW - Leibniz Centre for European Economic
Research showed that German economic sentiment improved in January
despite the uncertainty over the further course of the
The ZEW Indicator of Economic Sentiment climbed 6.8 points to
61.8 in January. The reading was above the expected level of
The greenback dipped to a 5-day low of 0.8868 versus the Swiss
franc, compared to Monday's closing quote of 0.8901. The greenback
is poised to find support around the 0.86 level.
Data from the Federal Statistical Office showed that
Switzerland's producer and import prices decreased in December.
Producer and import prices fell 2.3 percent year-on-year in
The greenback eased back to 1.2720 against the loonie, a pip
short of Asian session's 4-day low of 1.2719. The greenback was
worth 1.2752 against the loonie at yesterday's close. The greenback
is seen facing support around the 1.25 region.
The greenback hit a 4-day low of 0.7725 versus the aussie, down
from yesterday's close of 0.7677. Next key support for the
greenback may be seen around the 0.82 region.
On the other hand, the greenback was steady against the yen,
after having climbed to a 5-day high of 104.09 in Asian deals. The
pair was worth 103.68 when it ended deals on Monday.
After falling to a 4-day low of 0.7141 in the previous session,
the greenback bounced off to 0.7114 against the kiwi. At
yesterday's trading close, the pair was quoted at 0.7105. The
greenback is likely to challenge resistance around the 0.68
Data from Statistics New Zealand showed that New Zealand retail
card spending growth accelerated in December driven by higher
spending on groceries, furniture and electronics.
Total retail card spending grew 3.5 percent year-on-year, which
was faster than the 1.4 percent annual growth posted in
Looking ahead, Canada manufacturing sales for November are set
for release in the New York session.