U.S. Dollar Rises After Fed's Yellen Comments
January 18 2017 - 7:17PM
RTTF2
The U.S. dollar strengthened against other major currencies in
the Asian session on Thursday, following the upbeat comments from
Federal Reserve Chair Janet Yellen that she expects rates to rise a
few times a year until end of 2019. Speaking at the Commonwealth
Club in San Francisco, California, Yellen said that she cannot
project the specific timing of another rate hike, while the Fed is
close to its dual mandate of full employment and price
stability.
The Fed hiked interest rates in December for only the second
time in a decade. While some Fed members have predicted three
interest rate hikes in 2017, others say the central bank should
hike rates more gradually.
Wednesday, the U.S. dollar showed mixed trading against its
major rivals. While the U.S. dollar rose against the yen, it held
steady against the euro, the pound, and the Swiss franc.
In the Asian trading, the U.S. dollar rose to 2-day highs of
1.0622 against the euro, 1.2253 against the pound and 1.0083
against the franc, from early lows of 1.0645, 1.2290 and 1.0063,
respectively. If the greenback extends its uptrend, it is likely to
find resistance around 1.04 against the euro, 1.19 against the
pound and 1.02 against the franc.
Against the Australian and the New Zealand dollars, the
greenback advanced to 2-day highs of 0.7493 and 0.7117 from
yesterday's closing quotes of 0.7505 and 0.7125, respectively. The
greenback is likely to find resistance around 0.73 against the
aussie and 0.69 against the kiwi.
Against the U.S. and the Canadian dollars, the greenback climbed
to a 6-day high of 114.89 and an 8-day high of 1.3272 from
yesterday's closing quotes of 114.66 and 1.3269, respectively. On
the upside, 118.00 against the greenback and 1.35 against the
loonie are seen as the next resistance level for the greenback.
Looking ahead, Swiss PPI for December and Eurozone current
account data for November are slated for release later in the
day.
The European Central bank will announce its interest rate
decision at 7:45 am ET. The economists expect the central bank's
deposit rate and refinancing rate to remain stable at -0.4 percent
and 0 Percent, respectively.
Following the announcement, European Central Bank President
Mario Draghi will hold the customary post-meeting press conference
at 8:30 am ET.
In the New York session, U.S. building permits and housing
starts for December, U.S. weekly jobless claims for the week ended
January 14, Federal Reserve Bank of Philadelphia manufacturing
index for January, U.S. crude oil inventories data and Canada
manufacturing sales data for November are set to be published.
At 3:45 pm ET, San Francisco Fed President John Williams is
expected to speak before the Solano Economic Development
Corporation Annual Luncheon Meeting, Fairfield, United States.
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