U.S. Dollar Climbs As Trade-war Worries Ease
March 08 2018 - 1:42AM
RTTF2
The U.S. dollar strengthened against its major counterparts in
the European session on Thursday, as White House Press Secretary
Sarah Sanders suggested Canada, Mexico and other countries may be
exempted from forthcoming tariffs on steel and aluminium.
Concerns about the U.S. tariff plan eased after the White House
statement that Canada and Mexico, and possibly other countries
could be included in carve-outs.
Sanders said the "carve outs" would be made on a "case by case"
and "country by country" basis and on national security
grounds.
"There are potential carve outs for Canada and Mexico based on
national security and possibly other countries as well. That would
be a case-by-case and country-by-country basis," Sanders told
reporters at the White House.
Yesterday's ADP jobs data and the Fed's Beige Book report
painting a positive picture of the world's largest economy also
buoyed the currency.
Investors await U.S. jobs data for February due on Friday to
assess the strength of the labor market. Economists expect hiring
to have picked up to 205,000 in February from 200,000 in the
previous month, and the unemployment rate to fall to 4 percent.
The currency held steady against its major rivals in the Asian
session.
The greenback advanced to a weekly high of 0.9456 against the
franc, compared to 0.9435 hit late New York Wednesday. The
greenback is seen finding resistance around the 0.97 region.
Data from the State Secretariat for Economic Affairs showed that
Switzerland's unemployment rate decreased slightly in February.
The jobless rate dropped to a seasonally adjusted 2.9 percent in
February from 3 percent in January.
The greenback that closed yesterday's trading at 1.2411 against
the euro climbed to a 2-day high of 1.2375. On the upside, 1.22 is
seen as the next resistance level for the greenback.
Figures from Destatis showed that Germany's factory orders
declined more than expected in January.
New orders in manufacturing dropped 3.9 percent month-on-month
in January, reversing a revised 3 percent rise in December. Orders
were forecast fall moderately by 1.8 percent.
The greenback reversed from an early low of 1.3910 against the
pound, rising to 1.3860. If the greenback rises further, 1.35 is
likely seen as its next resistance level.
Survey data from the Royal Institution of Chartered Surveyors
showed that UK house prices stabilized in February and property
coming to the market for sale declined.
The net house price balance fell to zero in February.
The greenback bounced off to 106.13 against the yen, from a low
of 105.89 hit at 2:45 am ET. The greenback is poised to find
resistance around the 110.00 level.
Data from the Cabinet Office showed that Japan's gross domestic
product rose a seasonally adjusted 0.4 percent on quarter in the
fourth quarter of 2017.
That exceeded expectations for an increase of 0.2 percent after
last month's preliminary reading suggested a gain of 0.1
percent.
The greenback recovered to 0.7255 against the kiwi, 1.2937
against the loonie and 0.7795 against the aussie, from its early
low of 0.7298, 2-day lows of 1.2867 and 0.7839, respectively. The
greenback is seen finding resistance around 0.70 against the kiwi,
1.32 against the loonie and 0.76 against the aussie.
Looking ahead, the European Central Bank will announce interest
rate decision at 7:45 am ET. The ECB is expected to hold its main
refi rate at a record low zero percent and the deposit rate at
-0.40 percent.
Canada housing starts for February, building permits and new
housing price index for January, as well as U.S. weekly jobless
claims for the week ended March 3 are due in the New York
session.
At 11:00 am ET, the Bank of Canada Governor Stephen Poloz speaks
at the unveil of the new $10 bank note, in Halifax.
At 3:35 pm ET, the BOC Deputy Governor Timothy Lane speaks about
the March interest rate decision at the Vancouver Board of
Trade.
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