U.S. Dollar Advances In Cautious Trade

The U.S. dollar climbed against other major currencies in the European session on Monday, amid concerns over China's economic growth and ahead of testimony from Federal Reserve Chair Jerome Powell due this week.

The People's Bank of China is expected to reduce its benchmark loan prime rate on Tuesday, after trimming some of its key lending rates last week.

Investors await congressional testimonies from Fed Chair Powell on Wednesday and Thursday for clues on the trajectory of interest rates.

U.S. Secretary of State Antony Blinken held a second and final day of critical meetings with senior Chinese officials amid escalating tensions and complex dynamics between the world's two largest economies.

U.S. markets are closed on account of the Juneteenth holiday.

The greenback touched 142.00 against the yen, setting nearly a 7-month high. On the upside, 145.00 is possibly seen as its next resistance level.

The greenback advanced to 4-day highs of 1.0907 against the euro and 0.8970 against the franc, off its early lows of 1.0946 and 0.8930, respectively. The next possible resistance for the currency is located around 1.07 against the euro and 0.92 against the franc.

The greenback edged up to 1.2803 against the pound, reversing from an early low of 1.2837. Should the greenback rises further, it may likely seek resistance around the 1.24 level.

The greenback resumed its rally against the kiwi, hitting a 4-day high of 0.6204. The greenback is seen finding resistance around the 0.60 level.

The greenback rose back to 0.6845 against the aussie, heading to pierce its Asian session's 4-day high of 0.6834. The greenback may find resistance around the 0.66 level.

In contrast, the greenback was down against the loonie, at 1.3179. If the currency falls further, 1.29 is likely seen as its next support level.

US Dollar vs CAD (FX:USDCAD)
Forex Chart
From Jun 2024 to Jul 2024