U.S. Dollar Extends Rise Amid Fed Rate Hike Expectations
November 30 2015 - 12:04AM
RTTF2
The U.S. dollar continued to be strong against the other major
currencies in the early European session on Monday, as traders bet
that the U.S. jobs data due this week is likely to support a Fed
rate hike from near zero.
The market expect the U.S. non-farm payrolls to have grown by
200,000 in November and unemployment to come in at 5 percent.
Federal Reserve Chair Janet Yellen is also scheduled to deliver
two speeches this week, joining several other Fed officials who are
due to give remarks.
The Federal Reserve's Monetary Policy Committee is set to meet
on December 15-16.
Additionally, the European Central Bank is scheduled to hold a
monetary policy meeting on Thursday, with many expecting the bank
to provide further stimulus.
In the Asian trading today, the U.S. dollar rose against most
major rivals amid risk aversion, as investors were cautious after
the sell-off in the Chinese markets last Friday.
In early European trading, the U.S. dollar rose to a 7-1/2-month
high of 1.0563 against the euro and more than a 7-month high of
1.5001 against the pound, from early lows of 1.0595 and 1.5050,
respectively. If the greenback extends its uptrend, it is likely to
find resistance around 1.04 against the euro and 1.49 against the
pound.
Against the yen and the Canadian dollar, the greenback advanced
to 1-week highs of 123.14 and 1.3393 from early lows of 122.69 and
1.3356, respectively. The greenback is likely to find resistance
around 124.00 against the yen and 1.36 against the loonie.
The greenback edged up to 1.0319 against the Swiss franc, from
an early low of 1.0294. The greenback may test resistance near the
1.04 region.
Meanwhile, the greenback edged down to 0.7207 against the
Australian dollar and 0.6564 against the NZ dollar, from an early
1-week high of 0.7170 and a 6-day high of 0.6514, respectively.
Thereafter, the greenback held steady against both the
currencies.
Looking ahead, preliminary German CPI data for November, Canada
current account data for the third quarter, U.S. pending home sales
data for October and U.S. Chicago PMI for November are set to be
published in the New York session.
At 1:25 pm ET, European Central Bank member and Bank of Spain
Governor Luis Maria Linde will deliver the speech "Situation and
Outlook for the Spanish Economy" at Palma De Mallorca, in
Spain.
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