Dollar Extends Advance After Better-than-expected Personal Income Data
March 30 2015 - 10:33AM
RTTF2
The U.S. dollar extended its early rally against its most major
rivals in early New York deals on Monday, following the release of
better-than-expected personal income data in the month of
February.
According to a report released by the Commerce Department, the
personal income climbed by 0.4 percent in February, matching the
upwardly revised increase seen in January.
Economists had been expecting income to rise by 0.3 percent.
Meanwhile, the report also showed that personal spending inched
up by 0.1 percent in February after dipping by 0.2 percent in
January.
The currency was already supported by expectations that the
Federal Reserve is on course to increase rates later this year. In
a speech at San Francisco on Friday, Fed Chair Janet Yellen told
that she expects the Fed to start normalising monetary policy later
this year, even though inflation and wage growth have not picked
up.
In the Asian session, the greenback was higher, adding onto
Friday's gains. The greenback rose by 0.17 percent versus the pound
and 0.03 percent against the euro on Friday.
The greenback appreciated to a 10-day high of 1.4752 against the
pound and a weekly high of 124.04 against the yen, compared to
Friday's closing values of 1.4869 and 119.10, respectively. If the
greenback continues rise, it may find resistance around 1.47
against the pound and 120.5 against the yen.
The greenback that closed last week's deals at 1.0885 against
the euro edged up to 1.0812. On the upside, the greenback may
challenge resistance around the 1.05 mark.
Survey figures from the European Commission showed that Eurozone
economic sentiment rose for the fourth successive month to its
highest level in nearly four years.
The economic sentiment index climbed to 103.9 from 102.3 in
February, revised from 102.1.
The greenback reached as high as 0.9672 against the franc at
3:00 am ET, before holding steady in subsequent trading. The
greenback-franc pair finished last week's trading at 0.9606.
The greenback spiked up to near a 2-week high of 0.7639 against
the aussie, 10-day highs of 1.2677 against the loonie and 0.7505
against the NZ dollar, up from last week's closing quotes of
0.7745, 1.2612 and 0.7561,respectively. The greenback may possibly
challenge resistance around 0.76 against the aussie, 1.28 against
the loonie and 0.745 against the kiwi.
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