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Dollar falls against the majors before housing inflation data
Mon, Aug 18 2008, 12:50 GMT
by Benny Menashe
| EUR/USD | USD/JPY | GBP/USD | USD/CHF | |
| 1.498 | 111.9 | 1.8955 | 1.1105 | |
| Resistance | 1.495 | 110.9 | 1.8785 | 1.1055 |
| 1.483 | 110.65 | 1.872 | 1.1035 | |
| 1.466 | 109.95 | 1.8625 | 1.091 | |
| Support | 1.4615 | 109.7 | 1.8515 | 1.0825 |
| 1.444 | 109.05 | 1.8385 | 1.08 |
The dollar fell against the yen, euro and GBP before U.S. government housing and inflation reports this week that may add to speculation the Federal Reserve will delay raising interest rates. The currency also retreated from the strongest level in almost six months against the euro, snapping a three-day advance, after crude oil and gold gained, eroding the allure of dollar-denominated assets. The British pound slid against the euro as an industry report showed U.K. home prices dropped the most since at least 2002. ``The dollar is looking somewhat vulnerable at these levels,'' said Michael Klawitter, a currency strategist at Dresdner Kleinwort. ``People are being cautious before tomorrow's housing starts report. If we see signs that the U.S. housing slowdown is worsening then that will be bad for the dollar.'' The EUR/USD is currently trading at $1.4708 as 11:26am, GMT. The USD/JPY is currently trading at 110.25 as of 11:46am,GMT.
The sterling dropped against the euro and traded near a two-year low versus the dollar after U.K. house prices posted their biggest annual decline in August since at least 2002, strengthening the case for lower interest rates. The U.K. currency has tumbled more than 7 percent against the dollar this month amid speculation falling property prices and rising unemployment will push the UK economy into a recession. It fell against the euro as Rightmove Plc, Britain's most-used property Web site, said the average asking price for a house fell almost 5 percent. ``As far as sterling is concerned we are still very bearish over the medium term,'' said Ian Stannard, a senior currency strategist in London at BNP Paribas SA, the largest French bank. Today's data ``is consistent with our view that the U.K. is heading into a recession.'' The GBP/USD is currently trading at $1.8671 as of 11:40am, GMT.
Australia's currency halted two days of losses and before a U.S. report tomorrow that may show builders began work in July on the fewest houses in 17 years, undermining the outlook for the world's largest economy. The Australian dollar also advanced as the price of gold, the nation's third most-valuable commodity export, climbed for the first time in three days. The AUD/USD is currently trading at $0.8728 as of 11:50am, GMT.
Today's Economic Events
| Time | Event | Currency | Period | Previous | Forecast | Significance | Actual |
| 17:00 | NAHB Housing Market Index | USD | Jul | 16 | 1 | ||
| 12:30 | Foreign Securities Purchases | CAD | Jul | 10.7B | 2 | 6.5B | |
| 9:00 | Trade Balance | EUR | Jun | -1.5B | 1 | ||
| 7:15 | Retail Sales y/y | CHF | Jul | 7.40% | 1 | ||
| 0:00 | Rightmove House Price Index m/m | GBP | Jul | -1.80% | 2 |
Published on Mon, Aug 18 2008, 12:57 GMT
Archive
- The Sterling tumbles as traders bet on a rate cut to 2%
Published On Tue, Dec 2 2008, 10:35 GMT - Expectations for Rate Cuts Support The Yen
Published On Mon, Dec 1 2008, 11:54 GMT - The Yen Hold Firm against the Dollar
Published On Fri, Nov 28 2008, 10:36 GMT - The Dollar is Pressured by the Rise in Equities
Published On Thu, Nov 27 2008, 11:02 GMT - Market remains skeptical despite new steps, dollar stable
Published On Wed, Nov 26 2008, 10:52 GMT
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