U.S. Dollar Rises Ahead Of Inflation Data
09 September 2024 - 9:52PM
RTTF2
The U.S. dollar strengthened against its most major counterparts
in the New York session on Monday, as expectations for larger Fed
rate cuts faded and investors awaited August inflation data due
later this week.
The U.S. Labour Department will release the consumer price index
early Wednesday and the producer price index before Thursday's
open. Tame readings could give policymakers ammo for making a
50-bps rate cut on Sept. 18.
CME Group's FedWatch Tool is currently indicating a 75.0 percent
chance the Fed will lower rates by 25 basis points and a 25.0
percent chance of a 50 basis point rate cut.
Elsewhere, the governing council of the European Central Bank
will meet on Thursday, and it is widely expected that the board
will reduce interest rates for the second time this year.
The greenback climbed to a 6-day high of 1.1034 against the
euro, 5-day high of 0.8494 against the franc and near a 3-week high
of 1.3067 against the pound, off its early lows of 1.1091, 0.8427
and 1.3143, respectively. The currency is seen finding resistance
around 1.06 against the euro, 0.92 against the franc and 1.27
against the pound.
The greenback advanced to more than a 3-week high of 0.6647
against the aussie and near a 3-week high of 0.6124 against the
kiwi, from its early lows of 0.6689 and 0.6186, respectively. The
currency is likely to locate resistance around 0.63 against the
aussie and 0.60 against the kiwi.
The greenback rose to 1.3577 against the loonie. If the currency
strengthens further, it is likely to test resistance around the
1.38 region.
Meanwhile, the greenback retreated against the yen and was
trading at 142.73. The currency is poised to challenge support
around the 141.00 level.
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