U.S. Dollar Higher Ahead Of Fed Meeting
May 02 2022 - 7:34AM
RTTF2
The U.S. dollar advanced against its major counterparts during
European deals on Monday, as investors awaited the Federal
Reserve's interest rate decision due this week for more clues about
the pace of further rate hikes.
The Fed kicks off its two-day meeting on Tuesday, with investors
expecting a rate hike of 50 basis points when it delivers decision
on Wednesday.
Investors will be watching the Fed's accompanying statement to
help determine how aggressive the central bank plans to tighten
monetary policy in the months ahead.
On th economic data front, the U.S. will release ADP private
sector employment, initial jobless claims, nonfarm payrolls, ISM
manufacturing and services PMIs this week.
U.S. treasury yields rose, with the benchmark 10-year yield
touching 2.969 percent.
In addition, the monetary policy decisions from the Reserve Bank
of Australia and the Bank of England are scheduled this week, with
rate hikes expected.
The greenback moved up to 0.9770 against the franc, its highest
level since May 2020. If the greenback rises further, 0.99 is
likely seen as its next resistance level.
The greenback was up against the pound, at 1.2505. The greenback
is seen finding resistance around the 1.22 level.
The greenback rebounded to 1.0503 against the euro, from a low
of 1.0568 seen at 3 am ET. On the upside, 1.02 is possibly seen as
the next resistance level.
Extending its early gains, the greenback climbed to nearly a
2-year high of 0.6421 against the kiwi and more than a 4-month high
of 1.2914 against the loonie. The greenback is likely to challenge
resistance around 0.63 against the kiwi and 1.32 against the
loonie.
The greenback rose back to 0.7041 against the aussie, on track
to pierce a fresh 3-month high of 0.7032 seen in the Asian session.
Next key resistance for the greenback is likely seen around the
0.68 level.
The greenback staged a modest recovery against the yen, with the
pair trading at 130.29. The greenback may face resistance around
the 132.00 level.
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