Dollar falls ahead of FOMC minutes on Wednesday and impasse in U.S. stimulus talks

18 Aug 2020, 15:10 · Views 1,041

Market Review - 17/08/2020 23:29GMT

Dollar falls ahead of FOMC minutes on Wednesday and impasse in U.S. stimulus talks

The greenback ended lower across the board on Monday due to continued deadlock in U.S. stimulus negotiations between the Democrats and Republicans and as investors remained cautious ahead of Wednesday's release of Federal Reserve meeting minutes for clues about anticipated shift in the policy outlook.

Versus the Japanese yen, dollar met renewed selling at 106.65 in New Zealand and fell to 106.47 in Asian morning on usd's weakness. Despite rebounding to 106.62, the pair later dropped to session lows of 105.95 in New York due to usd's broad-based weakness as well as selloff in U.S. Treasury yields.

The single currency went through a roller-coaster ride as despite initial rise from 1.1834 in New Zealand to 1.1868 shortly after European open, the pair dropped to session lows at 1.1830 before rising to a 9-day high of 1.1880 in New York morning on usd's weakness and then weakened again to 1.1858 on profit-taking and traded at 1.1869 near the close.

Although the British pound moved narrowly in Asia and rebounded from 1.3085 to 1.3121 in European morning, price then fell to session lows at 1.3074 on cross-selling in sterling before rebounding in tandem with euro to 1.3112 in New York on usd's weakness and then traded broadly sideways.

Data to be released on Tuesday :

New Zealand GDT price index, and U.S. building permits, housing starts, redbook.

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