U.S. Dollar Advances Ahead Of Data Deluge
January 03 2023 - 05:11AM
RTTF2
The U.S. dollar climbed against its major counterparts in the
European session on Tuesday, as investors awaited the release of
the minutes of the U.S. Federal Reserve's last policy meeting that
is expected to shed light on the trajectory and pace of rate
hikes.
The Fed minutes to be released on Wednesday could shed
additional light on the central bank's policy outlook for 2023.
U.S. nonfarm payrolls data will be released on Friday.
Economists expect the employment to rise by 200,000 jobs in
December, compared to 263,000 jobs seen in November. The jobless
rate is expected to hold steady at 3.7 percent.
Traders await the S&P Global U.S. final manufacturing PMI
due out at 9:45 am ET. Economists forecast the factory PMI to match
the flash estimate of 46.2 in December.
The U.S. dollar index that tracks the greenback against a basket
of other currencies reached a fresh 2-week high of 104.86.
The greenback rebounded to 131.18 against the yen, from more
than a 7-month low of 129.50 seen at 11 pm ET. The pair had touched
a 4-day high of 131.40 in early Asian trading. If the greenback
rises further, 137.00 is likely seen as its next resistance
level.
The EUR/USD pair fell to 1.0519, its weakest level since
December 12. The greenback is likely to test resistance around the
1.035 area.
The greenback climbed to 1.1899 against the pound for the first
time since November 23. Next key resistance for the greenback is
seen around the 1.16 mark.
The USD/CHF pair approached its strongest level since December
8, at 0.9399. The greenback may locate resistance around the 0.955
level.
The greenback advanced to an 8-day high of 0.6688 against the
aussie, near 2-week high of 1.3678 against the loonie and near a
5-week high of 0.6200 against the kiwi, from its early near 3-week
low of 0.6835 and 4-day lows of 1.3523 and 0.6362, respectively.
The currency is seen finding resistance around 0.65 against the
aussie, 1.38 against the loonie and 0.61 against the kiwi.
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