U.S. Dollar Higher On Growth Hopes
March 31 2021 - 11:48PM
RTTF2
The U.S. dollar strengthened against its major opponents in the
Asian session on Thursday, as President Joe Biden's $2.3 trillion
infrastructure plan further boosted the prospects of a faster
recovery in the economy.
Biden's multitrillion-dollar proposal includes funding for
bridges, roads and water projects and expansion of broadband access
and domestic chip production.
The plan would increase the corporate tax rate to 28 percent
from 21 percent to pay for the package.
Investors await reports on weekly jobless claims, manufacturing
activity and construction spending due later in the day.
The Labor Department is scheduled to release its more closely
watched monthly jobs report on Friday, which includes both public
and private sector jobs.
Economists currently expect employment to jump by 639,000 jobs
in March after an increase of 379,000 jobs in February. The
unemployment rate is expected to drop to 6.0 percent from 6.2
percent.
The greenback jumped to 0.9462 against the franc, its highest
level since July 2020. If the greenback rises further, 0.96 is
likely seen as its next resistance level.
The greenback edged up to 1.3746 against the pound and 1.1713
against the euro, from its early lows of 1.3791 and
1.1733,respectively. The next likely resistance for the greenback
is seen around 1.34 against the pound and 1.14 against the
euro.
The greenback remained higher against the yen, with the pair
trading at 110.70. On the upside, 112.00 is possibly seen as its
next resistance level.
The greenback gained to 1.2602 against the loonie, up from
Wednesday's close of 1.2562. The greenback is seen finding
resistance around the 1.27 area.
The U.S. currency appreciated to a 6-day high of 0.6946 against
the kiwi and more than a 3-month high of 0.7532 against the aussie,
from Wednesday's closing values of 0.6984 and 0.7593, respectively.
The greenback is likely to challenge resistance around 0.68 against
the kiwi and 0.74 against the aussie.
Looking ahead, PMI reports from major European economies are due
in the European session.
Canada building permits for February, U.S. weekly jobless claims
for the week ended March 27, ISM manufacturing PMI for March and
construction spending for February are set for release in the New
York session.
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