U.S. Dollar Climbs On Fed Rate Hike Hopes
April 23 2018 - 2:34AM
RTTF2
The U.S. dollar strengthened against its major counterparts in
early European deals on Monday, buoyed by rising U.S. bond yields
amid bets that the Federal Reserve will keep raising rates to
prevent the world's largest economy from overheating.
U.S. treasury yields were higher, with the benchmark yield on
10-year note rising 2.99 percent, while that of 2-year equivalent
was up by 2.47 percent. Yields move inversely to bond prices.
In an interview with Spanish newspaper El Pais, San Francisco
Federal Reserve Bank President John Williams said that a trade war
would bring very negative effects to the economy, but it is too
soon to say if such a conflict will arise.
Williams warned that if the conflict increase there would be
less growth, more inflation and lower quality of life all over the
world.
Traders await U.S. manufacturing PMI and existing home sales
data due later in the day.
Other economic reports slated for release this week include
S&P Corelogic Case-Shiller and FHFA home price indices, new
home sales and consumer confidence on Tuesday; durable goods orders
and weekly jobless claims on Thursday; followed by gross domestic
product and consumer sentiment on Friday.
The greenback strengthened to more than a 3-month high of 0.9777
against the franc, 5-week high of 1.3959 against the pound and more
than a 2-week high of 1.2226 against the euro, from Friday's
closing values of 0.9748, 1.4002 and 1.2286, respectively. The next
possible resistance for the greenback is seen around 0.99 against
the franc, 1.38 against the pound and 1.20 against the euro.
The greenback firmed to more than a 2-month high of 108.28
against the yen and a 2-week high of 1.2806 against the loonie, up
from last week's closing values of 107.62 and 1.2765, respectively.
The greenback is likely to find resistance around 109.00 against
the yen and 1.29 against the loonie.
The greenback climbed to near a 5-week high of 0.7166 against
the kiwi and more than a 4-month high of 0.7634 against the aussie,
off its early lows of 0.7218 and 0.7683, respectively. If the
greenback extends rise, 0.70 and 0.75 are possibly seen as its next
resistance levels against the kiwi and the aussie,
respectively.
Looking ahead, Canada wholesale sales for February and U.S.
existing home sales for March are scheduled for release in the New
York session.
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