Home Fundamental Comment Dollar rebounds off four-month low

Dollar rebounds off four-month low

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Dollar trades near four-month low on disappointing U.S. economic reportsThe dollar rebounded from its lowest level in four months on Monday as many investors closed their selling positions after the recent fall.

The dollar index, which tracks the movements of the green currency against six major currencies, found support at 93.35, where it is currently hovering around 93.97, slightly above this week’s pivot point located at 93.92.

Perhaps the main support to the dollar index came from the drop in the euro that plunged on lack of significant from the talks between the Greek government and its creditors.

While Greece managed to repay a 750 million euros interest payment to the IMF, it may not be able to repay debt maturing to the IMF next month.

The GBPUSD also dropped for a second straight session to trade around 1.5673, while the USDJPY rose to trade around 119.80.

Later in the week, eyes will focus on U.S. housing and manufacturing data, with utmost attention to Friday’s inflation.

Downbeat retail sales and consumer confidence reports released last week raised speculations the Fed would push back the timing of its interest rate hike.

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Ahmed Mamdouh Ahmed Mamdouh, Co-Founder and Head of English Fundamental Analysis at FXComment.com, with 7 years of experience in the financial markets. Mamdouh holds a Master’s Degree in Economics from The American University in Cairo and a Bachelor Degree in Economics from The Faculty of Economics and Political Science, Cairo University.

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