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U.S. Dollar Rises Against Most Majors Amid Risk Aversion

06:21, 27th June 2016

(RTTNews) - The U.S. dollar advanced against its most major counterparts in early New York trading on Monday, as traders rushed to the safe-haven assets amid continued uncertainty in the aftermath of the U.K.'s vote to leave the European Union.

The U.K. is ready to face the future with a strong economy that will adjust to the new situation, Chancellor of the Exchequer George Osborne said today in his first remarks since Britons voted to leave the EU in the June 23 referendum.

But he added that it was "inevitable" that the U.K. economy would face an "adjustment" in the wake of the Brexit vote.

Trading activity is somewhat subdued, as there is no major U.S. economic data to give direction.

Later in the week, traders await a speech Federal Reserve Chair Janet Yellen as well as reports on personal income and spending, consumer confidence, and manufacturing activity for more clues about the economy.

In economic news, data from Markit Economics showed that U.S. service sector activity expanded less-than-forecast in June.

The seasonally adjusted flash services PMI rose 51.3 in June, matching the May's reading. Nonetheless, the estimate came in below forecasts for a growth of 52.0.

The currency has been trading in a positive territory against most major rivals in European deals.

The greenback appreciated to a 31-year high of 1.3152 against the pound, compared to last week's closing value of 1.3660.

The greenback advanced to 1.0971 against the euro, up from Friday's closing value of 1.1083. On the upside, 1.08 is likely seen as the next resistance level for the greenback.

Data from the European Central Bank showed that Eurozone money supply growth accelerated in May and the annual increase in loans to households improved.

The broad monetary aggregate M3 increased by faster-than-expected 4.9 percent on a yearly basis, following a 4.6 percent increase seen in April. It was expected to rise to 4.8 percent.

Bouncing off from its early low of 0.9706 against the Swiss franc, the greenback edged up to 0.9784. The greenback is seen finding resistance near the 0.99 mark.

The greenback was trading moderately higher against the aussie and the kiwi, trading at 0.7401 and 0.7068, respectively. The greenback is likely to challenge resistance around 0.72 against the aussie and 0.69 against the kiwi.

On the flip side, the greenback was trading weak at 101.64 against the Japanese yen, compared to 102.20 hit late New York Friday. The next possible support for the greenback-yen pair may be located around the 100.00 region.

Looking ahead, at 1:30 pm ET, European Central Bank President Mario Draghi will deliver opening remarks at the European Central Bank Forum in Sintra.

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