U.S. Dollar Rises Amid Rising Risk Aversion
September 22 2016 - 10:09PM
RTTF2
The U.S. dollar strengthened against the other major currencies
in the Asian session on Friday amid rising risk aversion, due to
falling commodity prices.
Crude oil for November delivery are currently down $0.52 to
$45.80 a barrel.
Crude oil prices fell as investors remain cautious ahead of next
week's meeting of the Organization of the Petroleum Exporting
Countries in Algeria. Speculation triggered that oil producing
nation's such as Saudi Arabia, Iran and Iraq, will not slash or
freeze production to stabilize the oil market due to their
longstanding political rivalry and emphasis to expand market share
over prices.
In economic news, initial jobless claims unexpectedly dropped to
a two-month low in the week ended September 17th.
The report said initial jobless claims fell to 252,000, a
decrease of 8,000 from the previous week's unrevised level of
260,000. The decline surprised economists, who had expected jobless
claims to inch up to 262,000.
Thursday, the U.S. dollar fell 0.54 percent against the euro,
0.56 percent against the pound, 0.73 percent against the Swiss
franc and 0.42 percent against the yen.
In the Asian trading, the U.S. dollar rose to a 2-day high of
101.24 against the yen, from yesterday's closing value of 100.74.
The greenback may test resistance near the 105.00 region.
Against the euro, the pound and the Swiss franc, the greenback
advanced to 1.1194, 1.3035 and 0.9705 from yesterday's closing
quotes of 1.1207, 1.3074 and 0.9688, respectively. If the greenback
extends its uptrend, it is likely to find resistance around 1.10
against the euro, 1.28 against the pound and 0.98 against the
franc.
Against the Australian and the Canadian dollars, the greenback
edged up to 0.7629 and 1.3075 from yesterday's closing quotes of
0.7641 and 1.3041, respectively. The greenback is likely to find
resistance near 0.74 against the aussie and 1.32 against the
loonie.
Looking ahead, flash PMI reports from major European economies
for September are due to be released later in the day.
In the New York session, Canada retail sales for July and CPI
data for August, Markit's U.S. flash manufacturing PMI for
September and U.S. Baker Hughes rig count data are slated for
release.
At 9:00 am ET, U.S. Treasury Secretary Jack Lew and Treasury
Deputy Secretary Sarah Bloom Raskin will participate in the
Freedman Bank Forum, in Washington.
At 12:00 pm ET, Federal Reserve Bank of Philadelphia President
Patrick Harker, Cleveland Fed President Loretta Mester and Atlanta
Fed President Dennis Lockhart are expected to participate in
"Presidents' Perspectives: The Fed's Role in Our Communities"
closing plenary before the "Reinventing Our Communities:
Transforming Our Economies," a conference hosted by the Federal
Reserve Bank of Philadelphia .
At 12:30 pm ET, Federal Reserve Bank of Dallas President Robert
Kaplan participates in moderated Q&A before the Independent
Bankers Association of Texas Annual Convention, in San Antonio.
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