U.S. Dollar Advances As Fed Williams Backs Dec. Rate Hike
November 09 2017 - 11:37PM
RTTF2
The U.S. dollar climbed against its major counterparts in
pre-European deals on Friday, after San Francisco Fed President
John Williams said a rate hike in December would be appropriate in
the light of incoming economic data.
Speaking to BBC, Williams penciled in three further rate hikes
next year, with interest rates returned gradually to "a normal
level" of about 2.5 percent.
He appreciated the Fed Chair Yellen, saying she had done a
fantastic job "during a very difficult period of time."
Williams said he expects Yellen's successor Powel, who assumes
power in February next year, would continue to make sure that the
policy makers have a strong consensus around its policy decisions
and strategy.
Meanwhile, Senate Republicans released tax reform bill on
Thursday with key differences from a version proposed by the House
of Representatives, delaying the corporate tax cut until 2019 and
keeping seven individual income tax brackets.
The Senate plan leaves the number of tax brackets at seven. The
lowest bracket would be unchanged at 10 percent, but the top rate
would be lowered to 38.5 percent.
The bill proposes to slash the corporate rate from 35 percent to
20 percent, but that would take effect only in 2019.
Today's U.S. economic calendar is light with only University of
Michigan's consumer sentiment index for November due for
release.
The currency held steady against its major rivals in the Asian
session, with the exception of the euro.
The greenback advanced to 1.3113 against the pound and 1.1623
against the euro, from its early lows of 1.3158 and 1.1654,
respectively. The next possible resistance for the greenback is
seen around 1.29 against the pound and 1.15 against the euro.
The greenback rose to 0.9955 against the franc and 113.64
against the yen, off its prior lows of 0.9927 and 113.26,
respectively. On the upside, 1.02 and 114.5 are likely seen as the
next resistance levels for the greenback against the franc and the
yen, respectively.
The greenback bounced off to 0.7670 against the aussie, from a
3-day low of 0.7695 hit at 1:45 am ET. The greenback is seen
finding resistance around the 0.75 mark.
The greenback held steady against the kiwi, after rising to a
2-day high of 0.6921 at 9:30 pm ET. The pair finished Thursday's
trading at 0.6947.
On the flip side, the greenback pared gains to 1.2669 against
the loonie, from an early high of 1.2686. The greenback is likely
to locate support around the 1.24 area.
Looking ahead, U.K. industrial production, trade data and
consruction output for September are due in the European
session.
The University of Michigan's preliminary consumer sentiment
index for November is set for release at 10:00 am ET.
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