💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

FOREX-Dollar pressured by lower oil, weak U.S. consumer sentiment

Published 16/04/2016, 01:34 am
© Reuters.  FOREX-Dollar pressured by lower oil, weak U.S. consumer sentiment
EUR/USD
-
USD/JPY
-
DX
-
LCO
-
CL
-
DXY
-

(Adds U.S. data, comments, updates prices, changes dateline; previous LONDON)

* Yen benefits from dip in oil, stock markets

* Focus on G20 meetings in Washington

By Gertrude Chavez-Dreyfuss

NEW YORK, April 15 (Reuters) - The dollar fell broadly on Friday as a slide in oil prices ahead of weekend talks among producers in Doha and a soft U.S. consumer sentiment report capped risk appetite and spurred investors to buy safe-haven currencies such as the yen.

The dollar index, tracking the greenback's value against six major currencies, posted losses after two straight days of gains. The U.S. currency's fall versus the yen was the largest daily loss in more than a week.

"There's probably some anxiety about the Doha talks," said Shaun Osborne, chief currency strategist at Scotiabank in Toronto.

Oil producers led by top exporters Saudi Arabia and Russia will meet in Doha, Qatar on Sunday to discuss freezing output around current levels to contain an oil glut. It would be the first coordinated action by major OPEC and non-OPEC producers in 15 years.

U.S. crude futures were down 2.8 percent at $40.34 per barrel CLc1 , while Brent LCOc1 was off 2.4 percent at $42.78.

"Overall, I think the fact that oil producers are talking suggests that the psychology of the market has changed a little bit and probably the worst of the oil price declines is behind us. This would be good for risk sentiment going forward," Osborne said.

An underwhelming U.S. consumer sentiment report on Friday also weighed on the dollar and dampened tolerance for risk. The University of Michigan survey of consumer sentiment showed a preliminary reading of 89.7 for April, compared with a forecast of 92. decline in Michigan sentiment is another reminder that all is not well with U.S. consumers despite solid jobs data," said Brian Dolan, head market strategist at DriveWealth LLC, in Chatham, New Jersey.

"Following on disappointing March retail sales, today's dip augurs poorly for a quick rebound in consumer activity in the second quarter."

In late morning trading, the dollar index .DXY slid 0.2 percent to 94.685. For the week though, the index was poised to end on a positive note with a 0.4 percent rise.

Against the yen, the greenback fell 0.6 percent to 108.72 yen JPY= , its biggest daily loss since April 7. The dollar so far this year is down nearly 10 percent, on track for its worst year since 2010.

The euro rose 0.3 percent to $1.1294 EUR= , rising after three consecutive days of losses.

The gathering of G20 financial leaders in Washington this weekend has also created some nervousness. Going into the event, Japanese officials have commented on the yen's supposedly "excessive" moves. Their comments, however, have not deterred the yen from gaining.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.