U.S. Dollar Rises Ahead Of U.S. Data, Fed Speeches
May 05 2016 - 1:41AM
RTTF2
The U.S. dollar advanced against its major rivals in early
European trading on Thursday, with sentiment underpinned by a rally
in oil prices, and investors await weekly jobless claims and a slew
of Fed speeches later in the day.
Oil prices rose as a huge wildfire reduced production in
Canada's oil sands region and escalating fighting in Libya
threatened the North African nation's output.
U.S. treasury yields rose, with the benchmark yield on 2-year
note advancing 0.76 percent and that of 10-year equivalent were up
by 1.80 percent. Yields move inversely to prices.
The Labor Department releases weekly jobless claims for the week
ended April 30 at 8:30 am ET. Economists forecast claims to rise by
261,000, from 257,000 last week.
Investors shift their attention to speeches from FOMC member
John Williams, St. Louis Fed Bank President James Bullard and
Atlanta Fed President Dennis Lockhart for more indications about
monetary policy.
The Labor Department's all-important monthly jobs report on
Friday could provide further clues on the state of the economy.
The economy is expected to create 200,000 jobs in April, while
the unemployment index is expected to edge down to 4.9 percent.
Strong U.S. trade, services and factory orders reports released
overnight overshadowed news from payroll processor ADP that showed
private sector jobs growth expanded at a slower pace in April.
The greenback showed mixed performance in Asian deals. While the
currency held steady against the euro and the franc, it declined
against the pound and the yen.
The greenback advanced to a 6-day high of 0.9606 against the
franc and a 3-day high of 1.1450 versus the euro, off its early
lows of 0.9569 and 1.1494, respectively. On the upside, the
greenback may find resistance around 0.98 against the franc and
1.12 against the euro.
The greenback edged up to 1.4477 against the pound and 107.29
against the yen, from its previous lows of 1.4529 and 106.88,
respectively. If the greenback extends gain, it may find resistance
around 1.42 against the pound and 1.32 against the yen.
Looking ahead, Canada building permits for March and U.S. weekly
jobless claims for the week ended April 30 are slated for release
in the New York session.
At 9:15 am ET, ECB Vice President Vitor Constancio speaks on
"Re-Inventing the Role of Central Banks in Financial Stability", in
Ottawa.
The equity markets in Japan remains closed for Golden Week
holiday and some parts of Europe is off for Ascension Day
holiday.
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