U.S. Dollar Climbs On Hopes For Hawkish Fed Chair
October 17 2017 - 12:13AM
RTTF2
The U.S. dollar climbed against its most major opponents in
pre-European deals on Tuesday, as U.S. Treasury yields rose in the
wake of reports that President Donald Trump was favoring Stanford
economist John Taylor, considered to be relatively hawkish than
current Chair Janet Yellen, to lead the Federal Reserve.
Trump interviewed Taylor last week. Taylor is known as a
proponent of Taylor rule, which favors that the Fed funds rate
should be much higher than the current target of 1.0 - 1.25
percent.
Trump plans to interview Janet Yellen on Thursday about staying
on as Fed chair. Yellen's term ends in February.
Traders are looking forward to the release of industrial
production, along with homebuilder confidence and import and export
prices due today for more direction.
The greenback advanced to weekly highs of 0.9792 against the
franc and 1.1755 against the euro, from its early lows of 0.9748
and 1.1800, respectively. The next possible resistance for the
greenback is seen around 0.99 against the franc and 1.14 against
the euro.
The greenback hit 4-day highs of 0.7833 against the aussie and
0.7156 against the kiwi, off its early low of 0.7858 and more than
a 2-week low of 0.7207, respectively. Continuation of the
greenback's uptrend may see it challenging resistance around 0.77
against the aussie and 0.70 against the kiwi.
The greenback rose to 1.2552 against the loonie, from a low of
1.2513 hit at 6:00 pm ET. If the greenback rises further, 1.27 is
likely seen as its next resistance level.
The greenback rose back to 112.26 against the yen, heading to
pierce to its early 4-day high of 112.30. The greenback is seen
finding resistance around the 113.00 region.
On the flip side, the greenback declined to 1.3268 against the
pound, compared to 1.3250 hit late new York Monday. The greenback
is poised to challenge support around the 1.34 area.
Looking ahead, U.K. producer and consumer price indices and
Eurozone final CPI for September as well as German ZEW economic
sentiment index for October are set for release in the European
session.
U.S. import and export prices and industrial production for
September, along with NAHB housing market index for October are due
in the New York session.
US Dollar vs CAD (FX:USDCAD)
Forex Chart
From Aug 2024 to Sep 2024
US Dollar vs CAD (FX:USDCAD)
Forex Chart
From Sep 2023 to Sep 2024