U.S. Dollar Rises Ahead Of Inflation Data
December 10 2021 - 3:01AM
RTTF2
The U.S. dollar strengthened against its major opponents in the
European session on Friday, ahead of the U.S. inflation data that
is expected to put pressure on policymakers to raise the interest
rate at a faster pace.
The CPI is expected to increase to 6.8 percent year-on-year in
November from 6.2 percent in October.
Economists forecast an increase of 0.7 percent month-on-month in
November, after a 0.9 percent rise in the previous month.
A strong reading could force policymakers to lift interest rate
quicker than expected.
The Fed meeting is also in focus, as an acceleration in the pace
of tapering of asset purchases will be put into a discussion.
Money markets are currently pricing in a quarter point rate
increase in June.
The greenback climbed to 2-day highs of 1.1265 against the euro
and 0.6770 against the kiwi, off its early lows of 1.1303 and
0.6807, respectively. The greenback is seen locating resistance
around 1.10 against the euro and 0.66 against the kiwi.
The greenback reversed from its prior lows of 0.9229 against the
franc and 113.33 against the yen and a 2-day low of 1.3233 against
the pound and was trading up at 0.9253, 113.79 and 1.3187,
respectively. The greenback is seen facing resistance around 0.94
against the franc, 116.00 against the yen and 1.30 against the
pound.
In contrast, the greenback retreated to 0.7158 against the
aussie and 1.2697 against the loonie, following its previous 2-day
high of 0.7132 and a 3-day high of 1.2723, respectively. The
currency is poised to test support around 0.74 against the aussie
and 1.25 against the loonie.
University of Michigan's preliminary consumer sentiment index
for December, inflation data and monthly budget statement for
November will be out in the New York session.
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