U.S. Dollar Climbs After Upbeat Housing Data, Industrial Production
17 April 2018 - 8:50PM
RTTF2
The U.S. dollar strengthened against its major counterparts in
the New York session on Tuesday, as U.S. housing starts rebounded
in March and industrial production grew more than forecast,
spurring confidence in economic momentum.
Data from the Commerce Department showed that housing starts
jumped by 1.9 percent to an annual rate of 1.319 million in March
after tumbling by 3.3 percent to a revised 1.295 million in
February.
Economists had expected housing starts to increase by 2.1
percent to a rate of 1.262 million from the 1.236 million
originally reported for the previous month.
The Commerce Department said building permits also surged up by
2.5 percent to an annual rate of 1.354 million in March after
slumping by 4.1 percent to a revised 1.321 million in February.
Data showing a bigger than expected increase in U.S. industrial
production in March also improved sentiment.
The Fed report showed that industrial production climbed by 0.5
percent in March after surging up by a revised 1.0 percent in
February.
Economists had expected production to increase by 0.4 percent
compared to the 1.1 percent jump originally reported for the
previous month.
The greenback has been trading higher against its major rivals
in the European session.
The greenback strengthened to 0.9658 against the Swiss franc,
its highest since January 18. The greenback is seen finding
resistance around the 0.98 region.
The greenback bounced off to 107.17 against the Japanese yen,
from a 5-day low of 106.88 hit at 3:00 am ET. On the upside, 110.00
is likely seen as the next resistance for the greenback.
Reversing from an early near a 3-week low of 1.2414 against the
euro, the greenback moved up to 1.2343. The next possible
resistance for the greenback is seen around the 1.22 level.
Survey data from the Mannheim-based think tank ZEW showed that
German economic confidence declined sharply in April.
The ZEW Indicator of Economic Sentiment dropped to -8.2 in April
from +5.1 in March. The score was forecast to fall to -1.
Having fallen to near a 2-year low of 1.4377 against the pound
at 3:30 am ET, the greenback reversed direction and rose to 1.4305.
If the greenback rises further, it may find resistance around the
1.40 level.
Data from the Office for National Statistics showed that the UK
unemployment rate declined in three months to February and earnings
of employees increased.
The ILO jobless rate came in at 4.2 percent in three months to
February, which was below the 4.3 percent logged in three months to
January. This was the lowest rate since comparable data began in
1971.
The greenback hit a weekly high of 0.7327 against the kiwi, off
its early 4-day low of 0.7373. The greenback is likely to find
resistance around the 0.72 region.
The greenback recovered to 0.7760 against the aussie, from a
4-day low of 0.7791 hit at 3:15 am ET. On the upside, 0.76 is
likely seen as the next resistance for the greenback.
Minutes from the Reserve Bank of Australia's April 3 meeting
showed that members of board said that the country's economy is
expected to continue on its gradual path of growth.
The country's inflation rate is also expected to pick up
gradually, the bank said, while global economic conditions remain
positive.
Sterling vs US Dollar (FX:GBPUSD)
Forex Chart
From Apr 2024 to May 2024
Sterling vs US Dollar (FX:GBPUSD)
Forex Chart
From May 2023 to May 2024