U.S. Dollar Off Lows After Positive U.S. Data; Yellen's Speech In Focus
25 August 2016 - 7:30PM
RTTF2
The U.S. dollar trimmed its early losses against its most major
counterparts in European deals on Thursday, after data showed that
U.S. durable goods orders surged up in July and weekly jobless
claims declined in the week ended August 20 before the Fed Chair
Janet Yellen's speech at the Fed's annual Jackson Hole symposium on
Friday.
Data from the Labor Department showed that first-time claims for
U.S. unemployment benefits decreased modestly in the week ended
August 20th.
The report said initial jobless claims edged down to 261,000, a
decrease of 1,000 from the previous week's unrevised level of
262,000. Economists had expected claims to rise to 265,000.
Data from the Commerce Department showed that durable goods
orders rebounded more than expected in July, after registering
steep drop in the previous month.
The Commerce Department said durable goods orders surged up by
4.4 percent in July after tumbling by a revised 4.2 percent in
June.
Economists had expected orders to climb by about 3.7
percent.
Central bankers and leading economists gather in Jackson Hole in
Wyoming for an annual symposium that begins later today, at which
repercussions of Brexit will be a key topic.
Federal Reserve Chair Janet Yellen will speak on Friday at the
symposium and investors will keep a close eye on her remarks for
clues about the outlook for U.S. interest rates.
The greenback was modestly lower against its major rivals,
except the yen, in the Asian session.
The greenback appreciated to 1.3173 against the pound, up by 0.7
percent from a low of 1.3263 hit at 8:45 pm ET. The next possible
resistance for the greenback is seen around the 1.30 mark.
The Distributive Trades Survey from the Confederation of British
Industry showed that British retail sales volume increased in
August after declining in prior month.
The retail sales balance rose to +9 percent from -14 percent in
July. The score was above expectations of -12 percent.
The greenback, having fallen to 0.9641 against the franc at 5:45
am ET, reversed direction and bounced off to 0.9671. The greenback
is seen finding resistance around the 0.975 region.
Data from the Federal Statistical Office showed Switzerland's
industrial production declined in the second quarter.
Industrial production fell 1.2 percent year-on-year, offsetting
prior quarter's 1.2 percent increase.
The greenback climbed back to 100.61 against its Japanese
counterpart, off its early low of 100.30. On the upside, 102.00 is
possibly seen as its next resistance level.
The greenback reversed from early 2-day lows of 0.7639 against
the aussie, 0.7336 against the kiwi and 1.2899 against the loonie,
recovering to 0.7602, 0.7286 and 1.2939, respectively. If the
greenback extends rise, 0.75, 0.71 and 1.30 are likely seen its
next resistance levels against the aussie, kiwi and the loonie.
On the flip side, the greenback remained weaker against the
euro, trading at 1.1292. The pair was trading at 1.1263 when it
closed Wednesday's trading. Further downtrend may see the greenback
challenging support around the 1.15 area.
Survey results from Ifo showed that German business confidence
dropped unexpectedly in August.
The business sentiment index dropped to 106.2 in August from
108.3 in July. The reading was expected to rise to 108.5. Markit's
flash U.S. services PMI for August is due at 9:45 am ET.
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