U.S. Dollar Rises Amid Risk Aversion
April 27 2015 - 06:15AM
RTTF2
The U.S. dollar strengthened against the other major currencies
in the early European session on Monday amid risk aversion, as
investor sentiment dampened after Greece failed to resolve impasse
with its European partners at the April 24 gathering in Riga,
Latvia.
The U.K.'s FTSE 100 index is currently down 0.15 percent or
10.81 points at 7,042, France's CAC 40 index is down 0.96 percent
or 50.00 points at 5,151, and Germany's DAX is down 0.22 percent or
26.39 points at 11,784.
Eurozone finance ministers refused to give any more aid to
Greece until it agrees economic reform plan at the meeting,
renewing worries that Greece may default on its debt obligations
Traders also look forward to the outcome of central bank meetings
this week in the U.S. and Japan and a slew of U.S. reports on
first-quarter GDP, consumer confidence, personal income and
spending, and manufacturing activity for further clues to the
global economic outlook and the Federal Reserve's thinking about
the direction of interest rates.
At the March FOMC meeting, policymakers found themselves at
crossroads on the appropriate timing of the first change in
interest rates since the financial crisis.
In the Asian trading, the U.S. dollar held steady against its
major rivals.
In the early European trading, the U.S. dollar rose to 4-day
highs of 0.9582 against the Swiss franc and 1.2194 against the
Canadian dollar, from early lows of 0.9526 and 1.2148,
respectively. If the greenback extends its uptrend, it is likely to
find resistance around 0.99 against the franc and 1.25 against the
loonie.
Moving away from an early near 2-month low of 1.5188 against the
pound, a 1-week low of 119.06 against the yen and a 4-day low of
0.7636 against the NZ dollar, the greenback advanced to 1.5129,
119.27 and 0.7591, respectively. On the upside, 1.46 against the
pound, 120.50 against the yen and 0.73 against the kiwi are seen as
the next resistance levels for the greenback.
Against the euro and the Australian dollar, the greenback edged
up to 1.0824 and 0.7791 from early lows of 1.0885 and 0.7836,
respectively. The greenback may test resistance near 1.05 against
the euro and 0.76 against the aussie.
Looking ahead, Markit's flash U.S. PMI for March is slated for
release in the New York session.
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