Dollar Strengthens Ahead Of US GDP Data, Fed Chair Yellen's Speech
March 27 2015 - 6:30AM
RTTF2
The U.S. dollar climbed against its major rivals in early
European deals on Friday, as traders await U.S final GDP data,
which is expected to reveal further economic expansion in the
fourth quarter.
The Commerce Department will release the third estimate of
fourth quarter GDP data at 8:30 am ET. The economy is expected to
grow by 2.4 percent, up from the second estimate's 2.2 percent.
The US Federal Reserve Chair Janet Yellen is scheduled to speak
at the Federal Reserve Bank of San Francisco Conference on "The New
Normal for Monetary Policy" at 3:35 pm ET. Yellen's speech could
give clues about the thinking of the central bank in the world's
biggest economy.
Investors also look forward to the Reuters/University of
Michigan's consumer sentiment index and personal consumption
figures for further hints about the economy.
The greenback ended Thursday's deals higher, supported by a set
of encouraging data and a rise in U.S. Treasury yields. Thursday,
the greenback rose 0.36 percent against the franc, 0.78 against the
euro and 0.24 against the pound.
Comments by two Fed officials on Thursday that the economy could
be able to handle higher rates also boosted the dollar. In an
interview with CNBC, Federal Reserve Bank of Atlanta President
Dennis Lockhart said that the central bank is coming to a point
where it is going to seriously look at a decision to raise rates.
In a separate event, Federal Reserve Bank of St. Louis President
James Bullard said it is appropriate for the central bank to begin
normalizing monetary policy now, as keeping rates low for long
period raise risk of asset bubbles.
The greenback added 0.7 percent to hit a 3-day high of 0.9691
against the franc, compared to Thursday's closing value of 0.9625.
The next possible resistance for the greenback-franc pair is seen
around the 0.98 zone.
The greenback advanced to 1.0800 against the euro, its strongest
since March 23. If the greenback continues rise, 1.05 is possibly
seen as its next resistance level.
The greenback hit a weekly high of 1.4796 against the pound,
adding 0.3 percent from yesterday's closing quote of 1.4844. On the
upside, 1.45 is possibly seen as the greenback's next resistance
level.
The greenback that closed Thursday's trading at 119.16 against
the yen and 1.2479 against the loonie edged up to 119.48 and
1.2528, respectively. Next possible resistance for the greenback
may be located around the 120.00 against the yen and 1.26 against
the loonie.
The greenback appreciated to a 1-week high of 0.7542 against the
NZ dollar and a 4-day high of 0.7775 against the Australian dollar,
compared to yesterday's closing values of 0.7591 and 0.7827,
respectively. The greenback is likely to find resistance around
0.75 against the kiwi and 0.77 against the aussie.
Looking ahead, at 6:30 am ET, U.S. Federal Reserve Governor
Stanley Fischer will deliver a speech titled "The Nonbank Financial
Sector: Issues and Regulation" at the Deutsche Bundesbank
Conference titled "Debt and Financial Stability - Regulatory
Challenges" in Frankfurt.
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