U.S. Dollar Falls As U.S. Recession Fears, Fed Rate Cut Bets

RTTNews | 55 days ago
U.S. Dollar Falls As U.S. Recession Fears, Fed Rate Cut Bets

(RTTNews) - The U.S. dollar weakened against other major currencies in the early European session on Wednesday, amid declining confidence in the U.S. economy and rising speculations that the Federal Reserve (Fed) will shortly start a new cycle of rate cuts.

Traders speculate that the Fed will shortly start a new rate cut cycle and slash borrowing costs by 100 basis points in 2025.

Amid worries about a U.S. recession and the intensifying US-China trade war, the immediate response to U.S. President Donald Trump's decision last week to halt sweeping reciprocal tariffs for 90 days was brief.

Traders wait for Fed Chair Jerome Powell's speech due later during the U.S. session for cues about the rate-cut path.

In the European trading today, the U.S. dollar fell to a 6-1/2-month low of 1.3289 against the pound and a 5-day low of 142.11 against the yen, from early highs of 1.3230 and 143.18, respectively. If the greenback extends its downtrend, it is likely to find support around 1.35 against the pound and 141.00 against the yen.

Against the euro and the Swiss franc, the greenback dropped to 2-day lows of 1.1385 and 0.8129 from early highs of 1.1293 and 0.8208, respectively. The greenback may test support near 1.15 against the euro and 0.80 against the franc.

The greenback edged down to 1.3924 against the Canadian dollar, from an early low of 1.3960. On the downside, 1.43 is seen as the next support the 1.43 region.

Looking ahead, U.S. mortgage approvals data, U.S. retail sales data for March, industrial and manufacturing productions for March, business inventories for February, U.S. NAHB housing market index for April and U.S. EIA crude oil data are slated for release in the New York session.

read more
Canadian Dollar Appreciates Amid Risk Appetite

Canadian Dollar Appreciates Amid Risk Appetite

The Canadian dollar climbed against its major counterparts in the New York session on Tuesday, as investors monitored trade talks between the U.S. and China that continued for a second day.
RTTNews | 10h 7min ago
Yen Recovers Amid BoJ Rate Hike Speculation

Yen Recovers Amid BoJ Rate Hike Speculation

The Japanese yen recovered from early lows against other major currencies in the European session on Tuesday, as traders speculate that the Bank of Japan (BoJ) will hike interest rates this year.
RTTNews | 19h 42min ago
Pound Slides On Weak U.K. Employment Data

Pound Slides On Weak U.K. Employment Data

The British pound weakened against other major currencies in the early European session on Tuesday, after the U.K. unemployment rate rose slightly in the three months to April period.
RTTNews | 21h 56min ago
Pound Slides Against Majors

Pound Slides Against Majors

The British pound weakened against other major currencies in the early European session on Tuesday.
RTTNews | 22h 18min ago
Yen Rises After Japan GDP Data

Yen Rises After Japan GDP Data

The Japanese yen strengthened against other major currencies in the Asian session on Monday, after data showed that an upward revision to Japan's first quarter GDP supporting the interest rate hike expectations.
RTTNews | 1 day ago
Yen Rises Against Majors

Yen Rises Against Majors

The Japanese yen strengthened against other major currencies in the Asian session on Monday.
RTTNews | 1 day ago
U.S. Dollar Higher After Strong Jobs Data

U.S. Dollar Higher After Strong Jobs Data

The U.S. dollar firmed against its major counterparts in the New York session on Friday, following the release of better-than-expected nonfarm payrolls report for May.
RTTNews | 4 days ago