U.S. Dollar Advances On Fed Rate Hike Optimism
October 02 2017 - 11:14PM
RTTF2
The U.S. dollar firmed against its major counterparts in the
Asian session on Tuesday, as overnight data showing faster than
expected expansion in U.S. manufacturing activity in September
added to hopes over a Fed rate hike in December.
Data from the Institute for Supply Management showed that its
purchasing managers index climbed to 60.8 in September, the highest
reading since May 2004, from 58.8 in August.
A reading above 50 indicates an expansion in manufacturing.
Fed Chair Janet Yellen speaks Wednesday while minutes of the
last ECB meeting will be published on Thursday.
Traders await ADP private sector jobs data on Wednesday; weekly
jobless claims, trade data, durable goods orders and factory orders
on Thursday; followed by non-farm payrolls report, due on Friday
for more clues about economy.
The currency has been trading in a positive territory on
Monday.
The greenback climbed to a new 4-week high of 0.7148 against the
kiwi, compared to Monday's closing value of 0.7195. If the
greenback extends rise, 0.70 is possibly seen as its next
resistance level.
The greenback advanced to near a 5-week high of 1.2538 versus
the loonie and a 2-1/2-month high of 0.7786 against the aussie,
from yesterday's closing values of 1.2506 and 0.7825, respectively.
The greenback is likely to challenge resistance around 1.27 against
the loonie and 0.76 against the aussie.
The greenback spiked up to 1.1696 against the euro, its
strongest since September 17. The greenback is poised to locate
resistance around the 1.16 region.
The greenback that closed yesterday's deals at 112.74 against
the yen and 0.9746 against the franc strengthened to a 5-day high
of 113.20 and a 4-month high of 0.9786, respectively. On the
upside, 114.00 and 1.00 are likely seen as the next resistance
levels for the greenback against the yen and the franc,
respectively.
The greenback advanced to near a 3-week high of 1.3280 against
the pound and held steady thereafter. The pair ended Monday's
trading at 1.3271.
Looking ahead, U.K. construction PMI for September and Eurozone
producer prices for August are set for release in the European
session.
Federal Reserve Governor Jerome Powell speaks about regulatory
reform at a financial regulation event jointly hosted by Reuters
and George Washington University in Washington DC at 8:30 am
ET.
At 12:30 pm ET, the Bank of Canada Deputy Governor Sylvain Leduc
speaks about Canadian business creation and productivity at the
Sherbrooke Chamber of Commerce, in Quebec.
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