U.S. Dollar Declines On Trump Policy Doubts

The U.S. dollar dropped against its major opponents in early European deals on Friday, as rumors over the possible departure of National Economic Council Director Gary Cohn triggered doubts about U.S. President Donald Trump's ability to push through his economic agenda. After Trump disbanded two advisory groups of American business leaders, reports emerged that Gary Cohn, a key force behind Trump's tax reform program, is considering resigning as Trump's top economic advisor. However, the White House knocked down these rumors.

Cohn, former president and chief operating officer of Goldman Sachs (GS), currently serves as the Director of the National Economic Council.

"Nothing has changed," a White House official said. "Gary is focused on his responsibilities as NEC Director and any reports to the contrary are 100% false."

Cohn was reportedly "upset" and "disgusted" with Trump's remarks indicating blame for the clashes between white supremacists and counter-protesters should be shared by both sides.

The day's economic calendar remains light, with a report on U.S. consumer sentiment slated for release later in the day.

The currency has been trading in a negative territory in the Asian session, with the exception of the Swiss franc.

The greenback fell to a weekly low of 108.99 against the yen, after having advanced to 109.55 at 9:00 pm ET. The next possible support for the greenback-yen pair is seen around the 106.00 region. The greenback slipped to 1.2899 against the pound and 1.1758 against the euro, off its early highs of 1.2863 and 1.1708, respectively. If the greenback extends decline, 1.30 and 1.19 are likely seen as its next support levels against the pound and the euro, respectively. The greenback dropped to 1.2639 versus the loonie, 0.7904 against the aussie and 0.7310 against the kiwi, from its early 2-day highs of 1.2691, 0.7870 and 0.7276, respectively. On the downside, 1.25, 0.80 and 0.74 are possibly seen as its next support levels against the loonie, the aussie and the kiwi, respectively.

Reversing from an early high of 0.9631 against the Swiss franc, the greenback ticked down to 0.9610. The greenback is likely to challenge support around the 0.94 mark.

Looking ahead, Canada CPI for July, U.S. University of Michigan's preliminary consumer sentiment for August and U.S. Baker Hughes rig count data are slated for release in the New York session.

At 10:15 am ET, Federal Reserve Bank of Dallas President Robert Kaplan is expected to speak at the Dallas County Community College.