U.S. Dollar Strengthens After Fed Dudley Supports December Rate Hike
August 15 2017 - 12:02AM
RTTF2
The U.S. dollar gained ground against its major opponents in the
Asian session on Tuesday, after the New York Fed President William
Dudley backed another rate hike this year citing easing financial
conditions and quite low level of interest rates.
In an interview with the Associated Press on Monday, Dudley
suggested that he prefers another rate hike later this year should
the economic growth continue as he expects.
Market expectations that the Fed would begin the process of
trimming its balance sheet in September are not unreasonable,
Dudley told.
"We do expect as the labor market continues to tighten, to see
firmer wage gains and that will ultimately filter into inflation
moving up towards our 2 percent objective," Dudley said. "A pretty
broad range of evidence that suggests the labor market is quite a
bit tighter than it's been in many years. Which is a good thing,"
he added.
Investors look forward to U.S. retail sales, import and export
prices and NAHB housing market index due today, Fed minutes and
housing starts on Wednesday, weekly jobless claims, industrial
production and leading indicators on Thursday, followed by the
University of Michigan's consumer sentiment on Friday for clues
about the economy.
The currency has been trading in a positive territory on Monday,
as U.S. treasury yields recovered from softer US CPI-led
sell-off.
The greenback strengthened to weekly highs of 110.45 against the
yen and 0.9755 against the franc, off its early lows of 109.61 and
0.9704, respectively. On the upside, 112.00 and 0.99 are likely
seen as the next resistance levels for the greenback against the
yen and the franc, respectively.
The greenback climbed to 4-day highs of 1.1752 against the euro,
1.2739 against the loonie and 0.7842 versus the aussie, up from its
previous lows of 1.1793, 1.2718 and 0.7877, respectively. The next
possible resistance levels for the greenback may be found around
1.16 against the euro, 1.29 against the loonie and 0.77 against the
aussie.
The greenback bounced off to 0.7291 against the kiwi, after
having fallen to 0.7312 at 9:30 pm ET. The greenback is seen
finding resistance around the 0.70 region.
The greenback advanced to 1.2935 against the pound, its
strongest since July 20. Continuation of the greenback's uptrend
may see it challenging resistance around the 1.28 area.
Looking ahead, U.K. consumer, producer and retail price indexes
for July and house price index for June are due to be released
later in the day.
In the New York session, U.S. import price index for July,
retail sales data for July, business inventories for June, U.S.
Empire State manufacturing index for August and U.S. NAHB housing
market index for August and Canada existing home sales data for
July are slated for release.
Euro vs US Dollar (FX:EURUSD)
Forex Chart
From Aug 2024 to Sep 2024
Euro vs US Dollar (FX:EURUSD)
Forex Chart
From Sep 2023 to Sep 2024