News Column

Dollar Declines Ahead Of US Data

August 14, 2014

BRUSSELS (Alliance News) - The US dollar slipped against its key counterparts in European deals on Thursday, as traders focus on US export and import prices for July and weekly jobless claims report, due shortly.

The jobless claims report for the week ended August 9, due at 8:30 am ET, may show the claims to have risen by 295,000 from 289,000 in the previous week.

The consensus estimates call for a 0.2% month-over-month drop in export prices, after falling 0.4% in June. Import prices are seen to decline 0.2% in July, reversing from June's 0.1% increase.

Yesterday's soft data on US retail sales drove down the dollar, while spurring hopes the Federal Reserve may not hurry to raise its low interest rates.

The US retail sales were virtually unchanged in July, defying forecasts for a 0.2% increase, according to the Commerce Department report released yesterday. The retail sales edging up by 0.2% in June.

Israel and Palestinians agreed to extend ceasefire for 5 more days on Wednesday, to continue more talks mediated by Egypt. Meanwhile, Israel launched air strikes in response to alleged rocket fire from Gaza shortly before the truce came into force.

Russian aid convoy has been heading towards Ukraine border, with Russia denying claims that convoy is used as pretext to send military supplies. However, Ukraine insisted that the convoy must be inspected by International Red Cross at the border, before passing inside.

The greenback held steady against the yen, after easing to 102.31 from an early 9-day high of 102.65. The next possible downside target for the greenback-yen pair is seen around the 101.5 mark.

The greenback that retreated from an early high of 0.9085 against the Swiss franc edged down to 0.9045, before stabilising shortly thereafter. If the greenback continues its decline, it may find support around the 0.90 level.

After falling to 1.3395 against the euro during early European deals, the greenback showed choppy trading in subsequent deals. This may be compared to an early high of 1.3348. The next key support for the greenback is seen around the 1.345 level.

The greenback given up some of its early gains against the pound with pair trading at 1.6687, off early 4-month high of 1.6656. The greenback may find support around the 1.68 region.

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Source: Alliance News

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