U.S. Dollar Rises Ahead Of Inflation Data
May 10 2024 - 9:44AM
RTTF2
The U.S. dollar was higher against its major counterparts in the
New York session on Friday, as investors awaited the release of
U.S. inflation data for April next week, which will guide the
outlook for Fed rate cuts.
The consumer price index is forecast to rise 0.3 percent on the
month and 3.4 percent annually, down from 0.4 percent and 3.5
percent, respectively in March.
Federal-funds futures currently show traders expect the Fed to
start lowering its benchmark interest rate in November though there
remains a chance of a cut in September.
Last week's softer-than-expected employment data for April
fuelled hopes that the U.S. central bank will deliver two
quarter-point cuts this year.
Market focus will also be on producer prices for April due on
Tuesday and retail sales for April scheduled on Wednesday.
The greenback rose to 1.2502 against the pound and 0.9085
against the franc, from its early 3-day lows of 1.2541 and 0.9050,
respectively. The greenback is likely to find resistance around
1.22 against the pound and 0.93 against the franc.
The greenback climbed to 0.6595 against the aussie, 0.6008
against the kiwi and 1.0760 against the euro, from an early 3-day
low of 0.6622, 1-week low of 0.6040 and a 4-day low of 1.0790,
respectively. Immediate resistance for the currency is seen around
0.64 against the aussie, 0.58 against the kiwi and 1.06 against the
euro.
The greenback recovered to 1.3673 against the loonie, reversing
from an early 1-week low of 1.3630. If the greenback continues its
uptrend, 1.39 is possibly seen as its next resistance level.
Against the yen, the greenback reached as high as 155.90. Next
key resistance for the currency may be located around the 160.00
level.
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