U.S. Dollar Rises
March 31 2015 - 04:44AM
RTTF2
The U.S. dollar strengthened against the other major currencies
in the Asian session on Tuesday, as traders expect the Federal
Reserve to be the first major central bank to embark on the path of
monetary policy normalization.
That said, Federal Reserve Chair Janet Yellen said last Friday
an interest rate hike may well be warranted later this year but
stressed that any increase in interest rates would be gradual.
With the Fed increasingly focusing on the jobs market in
charting its monetary policy, the March jobs report for the U.S.,
set for release on Friday is largely awaited by the traders.
"With continued improvement in economic conditions, an increase
in the target range for that rate may well be warranted later this
year," Yellen said at San Francisco Fed conference.
Meanwhile, data from a business economics group, the National
Association for Business Economics (NABE) said in its March report
that it has boosted its outlook for U.S. economy. The NABE
forecasts growth at 3.1 percent rate this year and 2.9 percent in
2016, compared to 2.4 percent growth last year.
U.S. personal income and Pending home sales increased more than
expectation in February, separate data showed on Monday.
Monday, the U.S. dollar showed mixed trading against against its
major rivals. While the U.S. dollar held steady against the euro
and the Swiss franc, it fell against the pound. Against the yen,
the U.S. dollar rose.
In the Asian trading today, the U.S. dollar rose to near 2-week
highs of 120.35 against the yen, 0.7617 against the Australian
dollar, 0.7471 against the NZ dollar and 1.2716 against the
Canadian dollar, from yesterday's closing quotes of 120.05, 0.7652,
0.7489 and 1.2672, respectively. If the greenback extends its
uptrend, it is likely to find resistance around 121.90 against the
yen, 0.74 against the aussie and 0.72 against the kiwi and 1.28
against the loonie.
The greenback advanced to 8-day highs of 0.9707 against the
Swiss franc and 1.0772 against the euro, from yesterday's closing
value of 0.9665 and 1.0831, respectively. On the upside, 1.02
against the franc and 1.04 against the euro are seen as the next
resistance levels for the greenback.
Against the pound, the greenback edged up to 1.4768 from
yesterday's closing quote of 1.4809. The greenback is likely to
find resistance around the 1.46 area.
Looking ahead, Eurozone unemployment rate for February and CPI
for March are slated for release shortly.
In the New York session, Canada GDP for January, U.S. S&P
Case Shiller home price index for January, Chicago PMI for March
and U.S. consumer confidence index for March are set to be
published.
At 7:55 am ET, U.S. Federal Reserve Bank of Richmond President
Jeffrey Lacker is expected to speak on Economic outlook in
Richmond.
Danièle Nouy, Chair of the ECB Supervisory Board, will deliver a
speech before the European Parliament's Committee on Economic and
Monetary Affairs on Brussels at 9:00 am ET. At the same time, U.S.
Federal Reserve Bank of Cleveland President Loretta Mester
moderates a policy session at a conference in Stone Mountain,
Georgia.
At 3:00 pm ET, U.S. Federal Reserve Bank of Kansas City
President Esther George is expected to speak on the U.S. economy in
New York.
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