The U.S. dollar slipped against its major counterparts during European deals on Monday, as U.S. treasury yields dropped after a surge last week.

The benchmark 10-year Treasury yield fell to 1.68 percent from the highest levels in about 14 months.

In a Wall Street Journal article, Fed Chair Jerome Powell reiterated that the central bank “will continue to provide the economy with the support that it needs for as long as it takes.”

Powell said that although the U.S. economic outlook is “brightening,” the recovery is “far from complete”.

Richmond Fed President Thomas Barkin said in a Bloomberg TV interview Sunday that there is no sign yet of unwanted inflation pressures.

Investors await speeches from a host of Fed officials, including three appearances by Powell this week for more clues about the magnitude and length of policy tightening.

This week’s U.S. economic calendar includes reports on new and existing home sales, durable goods orders, and personal income and spending.

The greenback weakened to 0.9256 against the franc and 1.1928 against the euro, off its early high of 0.9310 and near a 2-week high of 1.1871, respectively. The next possible support for the greenback is seen around 0.90 against the franc and 1.21 against the euro.

The greenback reached as low as 1.3875 against the pound, after rising to a 6-day high of 1.3818 at 9:15 pm ET. The greenback may locate support around the 1.41 level.

The greenback fell to 1.2478 against the loonie, 0.7744 against the aussie and 0.7180 against the kiwi, following a high of 1.2534, 5-day high of 0.7704 and near a 2-week high of 0.7139, respectively. The greenback is poised to challenge support around 1.21 against the loonie, 0.75 against the aussie and 0.73 against the kiwi.

The greenback dropped back to 108.62 against the yen, not far from a 10-day low of 108.58 set in the Asian session. On the downside, 104.00 is possibly seen as its next support level.

Final data from the Cabinet Office showed that Japan’s leading index rose less than initially estimated in January.

The leading index, which measures the future economic activity, rose to 98.5 in January, the highest since October 2018, from 97.7 in the previous month. However, the score was revised down from 99.1.

Federal Reserve Chair Jerome Powell is scheduled to speak in a virtual panel discussion about central bank innovation at an online event hosted by the Bank for International Settlements at 9 am ET.

U.S. existing home sales for February will be published in the New York session.

The material has been provided by InstaForex Company – www.instaforex.com

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