U.S. Dollar Extends Gain
August 05 2015 - 2:04AM
RTTF2
The U.S. dollar continued to be strong against the other major
currencies in the Asian session on Wednesday, in the wake of
comments from Atlanta Federal Reserve President Dennis Lockhart
that Fed policy makers are prepared to raise the Fed-funds rate in
September.
In an interview with The Wall Street Journal, Lockhart told that
it would take "a significant deterioration in the economic picture"
to persuade the Fed not to raise rates in September. He also said
that only a "significant deterioration" in economic momentum could
convince him to wait longer.
Lockhart's words raised strong belief that the Fed is moving
closer to raising interest rates at its September meeting.
The U.S. Commerce Department revealed Tuesday that factory
orders rose 1.8 percent in June compared to the previous month.
Economists were predicting an increase of 1.7 percent. In May,
factory orders were lower by 1.1 percent.
Tuesday, the U.S. dollar rose 0.63 percent against the euro,
0.15 percent against the pound, 0.89 percent against the Swiss
franc and 0.10 percent against the yen.
In the Asian trading today, the U.S. dollar rose to an 11-year
high of 1.3212 against the Canadian dollar and nearly a 4-month
high of 0.9789 against the Swiss franc, from yesterday's closing
quotes of 1.3190 and 0.9781, respectively. If the greenback extends
its uptrend, it is likely to find resistance around 1.34 against
the loonie and 0.98 against the franc.
Against the euro and the NZ dollar, the greenback advanced to
more than 2-week highs of 1.0847 and 0.6517 from yesterday's
closing quotes of 1.0879 and 0.6536, respectively. The greenback
may test resistance near 1.07 against the euro and 0.63 against the
kiwi.
The greenback climbed to a 9-day high of 1.5525 against the
pound and a 6-day high of 124.47 against the yen, from yesterday's
closing quotes of 1.5558 and 124.37, respectively. On the upside,
1.54 against the pound and 126.00 against the yen are seen as the
next resistance levels for the greenback.
Against the Australian dollar, the greenback edged up to 0.7352
from yesterday's closing value of 0.7377. The greenback is likley
to find resistance around the 0.72 area.
Meanwhile, the euro fell to more than a 2-week low of 0.6979
against the pound, from yesterday's closing quote of 0.6989. The
euro may test support near the 0.68 region.
Against the yen and the Australian dollar, the euro dropped to
2-week lows of 135.02 and 1.4735 from yesterday's closing quotes of
135.32 and 1.4742, respectively. If the euro extends its downtrend,
it is likely to find support around 134.00 against the yen and 1.44
against the aussie.
The euro slipped to a 5-day low of 1.4322 against the Canadian
dollar, from yesterday's closing value of 1.4349. On the downside,
1.41 is seen as the next support level for the euro.
Against the Swiss franc and the NZ dollar, the euro edged down
to 1.0621 and 1.6611 from yesterday's closing quotes of 1.0641 and
1.6625, respectively. The euro is likely to find support around
1.04 against the franc and 1.63 against the kiwi.
Looking ahead, service sector PMI reports from major European
economies for July and Eurozone retail sales for June are due to be
released in the European session.
In the New York session, U.S. private sector jobs data for July,
trade balance for June, U.S. services PMI for July and Canada trade
data for June are slated for release.
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