Dollar Value Extends Rise Ahead Of US Data
Ottawa-Canada (Jun 1) The US dollar extended its early advance against its most major rivals on Monday's European deals, as traders await a slew of economic data due this week, amid speculation that rebound in economic growth could pave way for a Fed rate hike in September.
The US manufacturing data is due out today, ADP non-farm payrolls report and trade data are set for release on Wednesday and a US jobs report will be out by Friday, which could shed more clues about economy.
Although the GDP data was weak on Friday, other recent economic data had been positive, supporting that the US economic growth is gaining traction.
The Federal Reserve will hold a monetary policy meeting on June 16-17 , with economists expecting no major policy changes.
The greenback was lower against the euro, franc and the pound on Friday, following the release of disappointing economic reports. While the US economy showed contraction for the first time in a year in the first quarter, Chicago area business activity unexpectedly contracted in the month of May.
The greenback rose to a session's high of 0.9479 against the franc, compared to last week's closing value of 0.9401. The greenback-franc pair may possibly challenge resistance around the 0.96 zone.
The greenback advanced to a 4-day high of 1.0890 against the euro, up by 0.91% from Friday's closing value of 1.0990. The greenback is seen finding resistance around the 1.08 area.
Final data from Markit Economics showed that Eurozone manufacturing sector continued to expand in May but the latest pace of expansion was slightly weaker than the initial estimate.
The final manufacturing Purchasing Managers' Index came in at 52.2, matching March's ten-month high but just below the flash estimate of 52.3. In April, the score was 52.
The greenback spiked up to 1.5196 against the pound, its strongest since May 7 . The next possible resistance for the greenback may be eyed around the 1.50 level. At Friday's close, the pair was valued at 1.5289.
Survey figures from Markit Economics showed that British manufacturing growth improved less-than-expected in May, due to modest expansions of both output and new orders.
The Markit/Chartered Institute of Procurement & Supply Purchasing Managers' Index , rose marginally to 52.0 in May from 51.8 in April, which was revised from 51.9. Economists had expected a reading of 52.8 for the month.
The greenback has been steady against its Japanese counterpart, after advancing to a 4-day high of 124.33 in early Asian deals. The pair closed Friday's trading at 124.10.
The greenback that ended Friday's trading at 1.2444 against the Canadian dollar edged up to 1.2492. Continuation of the greenback's bullish trend may take it to a resistance near the 1.26 mark.
Looking ahead, US personal income and spending data and US construction spending data - both for April and Canada RBC PMI and US Markit's PMI - both for May, are slated for release in the New York session.
At 9:05 am ET , Federal Reserve Bank of Boston President Eric Rosengren is expected to speak before the 2015 Workforce Stars Breakfast hosted by Capital Workforce Partners in Hartford , US.
After 25 minutes, Federal Reserve Governor Stanley Fischer will deliver a speech titled "Lessons from the Financial Crisis" at the American Bankers Association International Monetary Conference in Toronto .