U.S. Dollar Strengthens Ahead Of Fed Minutes
20 February 2018 - 3:59PM
RTTF2
The U.S. dollar firmed against its major counterparts in the
early European session on Tuesday, in tandem with treasury yields,
as investors await the release of minutes from the latest Fed
meeting for more signals about a possible rate hike in March.
The minutes from the January 30-31 meeting, due Wednesday, would
help gauge the pace of potential interest rate hikes this year.
In its statement, Fed signaled that inflation could pick up this
year, which would trigger "further gradual increases in the federal
funds rate."
Alongside minutes, U.S. manufacturing, services and home sales
data are scheduled to be released on Wednesday. The weekly jobless
claims are due on Thursday.
Fed policymakers scheduled to speak include New York Fed
President William Dudley and Atlanta Fed President Raphael Bostic
on Thursday, as well as Cleveland Fed President Loretta Mester and
San Francisco Fed John Williams on Friday.
The benchmark yield on 2-year note rose 2.23 percent, while that
of 10-year equivalent was up by 2.91 percent. Yields move inversely
to bond prices.
The currency has been trading higher in the Asian session.
The greenback strengthened to 107.11 against the Japanese yen, a
6-day high. At Monday's close, the pair was valued at 106.58. If
the greenback extends rise, 110.00 is seen as its next resistance
level.
The greenback that closed Monday's deals at 1.2407 against the
euro and 0.9291 against the franc spiked up to 6-day highs of
1.2345 and 0.9337, respectively. The greenback is seen finding
resistance around 1.22 against the euro and 0.95 against the
franc.
The greenback climbed to a 6-day high of 1.3932 against the
pound, up from Monday's closing value of 1.3995. The next possible
resistance for the greenback is seen around the 1.38 mark.
The greenback advanced to 6-day highs of 1.2598 against the
loonie and 0.7343 against the kiwi, compared to yesterday's closing
values of 1.2559 and 0.7371, respectively. Further uptrend for the
greenback is likely to see it finding resistance around 1.28
against the loonie and 0.72 against the kiwi.
The greenback rose back to 0.7904 against the aussie, heading to
pierce its early Asian session's 6-day peak of 0.7890. The
greenback is poised to challenge resistance around the 0.76
mark.
Weekly survey compiled by the ANZ bank and Roy Morgan Research
showed that Australia's consumer confidence weakened for the second
straight time during the week ended February 18.
The consumer confidence index dropped to 115.3 from 119.5 in the
preceding week.
Looking ahead, German ZEW economic sentiment index for February
is slated for release in the European session.
At 8:30 am ET, Canada wholesale sales for December are due.
Eurozone preliminary consumer confidence index for February will
be out at 10:00 am ET.
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