US Dollar Extends Decline
Canbera-Australia (Jun 9) The US dollar continued to be weaker against against the other major rivals on Tuesday, following media reports that US President Barack Obama had told the G7 summit in Germany that the strong dollar "posed a problem".
Reports said that President Barack Obama made his comments to French officials at the Group of Seven industrial nations summit in Munich.
The currency declined even after the White House denied it. "The President did not state that the strong dollar was a problem," the US official said.
The currency traded higher last Friday, on the back of upbeat jobs data. It reversed its gains on Monday following Obama's comments.
Monday, the US dollar fell 0.23% against the euro, 1.27% against the Swiss franc and 0.88% against the yen.
In the Asian trading today, the US dollar fell to 0.9251 against the Swiss franc for the first time since May 19. At yesterday's close, the greenback was trading at 0.9272 against the franc. The greenback may test support near the 0.90 region.
The greenback dropped to a 5-day low of 1.1331 against the euro and a 4-day low of 0.7721 against the Australian dollar, from yesterday's closing quotes of 1.1289 and 0.7698, respectively. If the greenback extends its downtrend, it is likely to find support around 1.15 against the euro and 0.80 against the aussie.
Against the pound, the yen and the Canadian dollar, the greenback slipped to 1.5362, 124.39 and 1.2392 from yesterday's closing quotes of 1.5346, 124.46 and 1.2408, respectively. On the downside, 1.58 against the pound, 121.00 against the yen and 1.20 against the loonie are seen as the next support levels for the greenback.
Looking ahead, Swiss unemployment rate for May is also slated for release at 1:45 am ET.
Subsequently, Japan preliminary machine tool orders for May is also due to be released at 2:00 am ET.
At 2:00 am ET, European Central Bank council member Erkki Liikanen is expected to speak on monetary policy at a conference organized by Finland's Financial Supervisory Authority, in Helsinki, Finland.
Swiss CPI for May, UK trade data for April and revised first quarter Eurozone GDP data are also set to be published in the European session.
At 3:00 am ET, Bank of England Deputy Governor Paul Tucker will speak at the Chatham House event on "A Transatlantic Perspective on the International Monetary System, Geopolitics and Fiscal Constitutions" in London.
In the New York session, US small business index for May and wholesale inventories for April are set to be announced.
At 8:30 am ET, European Central Bank board member Sabine Lautenschlager will deliver a speech to Dutch Finance Committee at the Hague, Holland.
Subsequently, ECB Supervisory Council's President Daniele Nouy is expected to speak at a conference in Berlin, Germany at 10:00 am ET.
Source: RTTnews
