The U.S. dollar slipped against the other major currencies in European deals on Monday, as the Fed’s preferred gauge of inflation, personal consumption expenditures price index, weakened in February.
Data from the Commerce Department showed that price index for PCE decreased 0.1 percent in February following a 0.1 percent increase in January. The reading was in line with expectations.
Core PCE prices rose just 0.1 percent in February after rising 0.3 percent a month earlier. Economists had forecast an increase of 0.2 percent.
Meanwhile, the report said personal income rose by 0.2 percent in February after climbing by 0.5 percent in January. Economists had expected income to tick up by 0.1 percent.
The Commerce Department also said personal spending inched up by 0.1 percent in February, matching the downwardly revised uptick seen in the previous month.
Traders now await speech by the Federal Reserve Chair Janet Yellen at an Economic Club of New York event on Tuesday. Yellen’s remarks could offer some clues about the central bank’s plans for further rate hikes this year.
The greenback showed mixed trading in Asian deals. While the currency held steady against the franc and the euro, it fell against the pound. Against the yen, it advanced.
In European deals, the greenback depreciated to 1.4234 against the pound, its lowest since March 22. This is down by 0.7 percent from last week’s closing value of 1.4133. The next possible support for the greenback may be found around the 1.44 mark.
Reversing from an early session’s high of 1.1153 against the euro, the greenback fell to a 5-day low of 1.1193. On the downside, 1.13 is likely seen as the next support level for the greenback.
The greenback dropped to a 4-day low of 0.9749 against the franc, following an advance to 0.9786 at 7:45 pm ET. Continuation of the greenback’s downtrend may take it to a support around the 0.95 mark.
The greenback retreated to 113.28 against the Japanese yen, from nearly 2-week high of 113.69 hit at 10:45 pm ET. The greenback is seen finding support around the 112.00 region.
The greenback slipped to 5-day lows of 0.6730 against the kiwi, 0.7550 against the aussie and 1.3203 against the loonie, reversing from early nearly 2-week high of 0.6668, 4-day highs of 0.7493 and 1.3285, respectively. If the greenback extends slide, it may find support around 0.68 against the kiwi, 0.765 against the aussie and 1.30 against the loonie.
The U.S. pending home sales for February are due shortly.
The material has been provided by InstaForex Company – www.instaforex.com