U.S. Dollar Advances Ahead Of Trump's Press Conference
January 11 2017 - 12:09AM
RTTF2
The U.S. dollar drifted higher against its major counterparts in
the early European session on Wednesday ahead of the U.S.
President-elect Donald Trump's press conference later in the day,
with investors awaiting more specifics about his stimulus measures,
mainly relating to tax cuts and infrastructure spending.
With Trump addressing the media for the first time since his
shocking victory on November 8 elections, market participants are
betting that he is likely to give details on his economic
policies.
According to incoming White House Press Secretary Sean Spicer,
Trump will address how he is handling the transfer of his business
to focus on the office.
Trump's proposed tax cuts and spending plans could boost U.S.
and global growth, while uncertainty about his trade policies adds
to the risks, the World Bank said in its latest outlook on the
global economy.
Growth in the United States was expected to pick up to 2.2
percent, as manufacturing and investment growth gain traction after
a weak 2016. The outlook for this year was left unchanged.
Meanwhile, European stocks recovered from early losses, as base
metal prices remained strong, the euro weakened against the dollar
and British grocer Sainsbury reported record Christmas sales,
defying concerns of a slowdown in consumer spending.
Oil prices also edged up after steep overnight losses in the
wake of reports that Saudi Arabia has started to comply with slight
supply cuts from contracted volumes in February, including to India
and Malaysia.
The greenback has been trading modestly higher against its major
rivals in the Asian session.
The greenback climbed to 1.2110 against the pound, off its early
2-day low of 1.2198. On the upside, 1.19 is possibly seen as the
next resistance level for the greenback.
Data from the Office for National Statistics showed that the
U.K. visible trade deficit widened more-than-expected in
November.
The trade in goods showed a deficit of GBP 12.2 billion versus a
shortfall of GBP 9.9 billion in October. Economists had expected
the deficit to rise to GBP 11.5 billion.
The greenback, having fallen to 115.67 against the yen at 7:00
pm ET, reversed direction and climbed to a 2-day high of 116.46.
The greenback is seen finding resistance around the 118.00
mark.
The greenback strengthened to 2-day highs of 1.0530 against the
euro and 1.0196 versus the Swiss franc, from Tuesday's closing
values of 1.0554 and 1.0168, respectively. If the greenback extends
rise, it may find resistance around 1.03 against the franc and 1.04
against the euro.
The greenback bounced off to 0.6990 against the kiwi and 0.7372
against the aussie, from its early low of 0.7022 and a multi-week
low of 0.7396, respectively. The next possible resistance levels
for the greenback may be seen around 0.67 against the kiwi and 0.70
against the aussie.
Looking ahead, the Bank of England governor Mark Carney will
testify before the Parliament's Treasury Select Committee in London
at 9:15 am ET.
The Energy Information Administration releases official crude
inventory data in the New York session.
New York Fed President William Dudley speaks about banking
culture from a regulatory perspective at the Banking Symposium in
New York at 1:20 pm ET.
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