U.S. Dollar Climbs Ahead Of Fed Chair Yellen's Testimony
September 28 2016 - 1:24AM
RTTF2
The U.S. dollar drifted higher against the other major
currencies in early European trading on Wednesday, as investors
focus on semi-annual testimony by the Fed Chair Janet Yellen later
in the day, which could give more clues about the Fed's outlook on
rates and the economy.
Janet Yellen is scheduled to testify before the House Financial
Services Committee at 10:00 am ET and is expected signal over an
interest rate hike in December.
Besides Yellen, Cleveland Fed President Mester and Kansas City
Fed President George are due to speak at separate events, which
would offer insights on the economy and monetary policy.
Better-than-expected U.S. consumer confidence and Markit's flash
services PMI for September released overnight also underpinned the
currency.
San Francisco Fed President John Williams said on Tuesday that
the U.S. economy is able to withstand the implications of an
interest rate hike, as delaying things too long risks the economy
tipping into recession.
"It is getting harder and harder to justify interest rates being
so incredibly low given where the U.S. economy is and where it is
going," Williams told.
Fed Vice Chairman Stanley Fischer also said that U.S. interest
rates should rise over time.
The greenback showed mixed performance in the Asian session.
While the greenback rose against the yen and the pound, it held
steady against the euro and the Swiss franc.
The greenback bounced off to 100.82 against the Japanese yen,
from a low of 100.26 hit at 7:30 pm ET. Continuation of the
greenback's uptrend may see it finding resistance around the 103.00
zone.
Survey figures released by the Shoko Chukin Bank showed that
Japan's small business confidence improved more than expected in
September.
The small business sentiment indicator climbed to 47.7 in
September from 46.3 in the prior month. The reading stayed above
the expected level of 47.
The greenback rose to a 1-week high of 1.1182 against the euro
and a 5-day high of 0.9737 against the Swiss franc, from early lows
of 1.1219 and 0.9695, respectively. If the greenback extends its
uptrend, it is likely to find resistance around 1.10 against the
euro and 0.98 against the franc.
The greenback climbed to a 2-day high of 0.7251 against the
kiwi, following a decline to 0.7305 at 6:45 pm ET. The greenback is
seen finding resistance around the 0.70 level.
The greenback edged up to 1.3231 against the loonie, off its
early low of 1.3192. Further uptrend may see the greenback
challenging resistance around the 1.33 mark.
U.S. durable goods orders for August and U.S. crude oil
inventories data are set to be published in the New York
session.
At 10:00 am ET, Federal Reserve Chair Janet Yellen will testify
on supervision and regulation before the Committee on Financial
Services, in Washington DC.
Ten minutes later, Federal Reserve Bank of St. Louis President
James Bullard Fed Bank of Chicago President Charles Evans will
deliver speeches on the Community Banking in the 21st Century
Conference hosted by the Federal Reserve Bank of St. Louis.
At 10:30 am ET, European Central Bank President Mario Draghi is
expected to speak about current developments in the euro area at
the German Bundestag, in Berlin.
At 4:30 pm ET, Federal Reserve Bank of Cleveland President
Loretta Mester is scheduled to speak before the Greater Cleveland
Partnership, in Cleveland.
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