US Dollar Climbs Ahead Of Fed Chair Yellen's Speech
Ottawa-Canada (Nov 12) The US dollar advanced against its most major rivals in early European deals on Thursday, as traders focus on speech by the Federal Reserve Chair Janet Yellen for more clues about the bank's rate hike in December.
Yellen is set to give welcoming remarks at the Conference on Monetary Policy Implementation in the Post-Crisis Period, Washington at 9:30 am ET . Fed Vice Chairman Stanley Fischer will give a speech entitled "The Transmission of Exchange Rate Changes to Output and Inflation" at the same venue.
Traders await weekly jobless claims figures due later the day, as well as retail sales data for October tomorrow to gauge the health of the economy.
The US treasury yields also rose, with the 10-year US Treasury yield higher by 2.32%, while that of 2-year equivalent was up by 0.87%.
Further benefitting the dollar was falling European stocks, driven by disappointing company updates.
The greenback was weaker in the Asian session, as investors took some profits off the table.
In European deals, the greenback firmed to a 2-day high of 1.0689 against the euro, reversing from its prior 3-day low of 1.0780. The next possible resistance for the greenback may be located around the 1.05 zone.
The European Central Bank will re-examine the degree of monetary policy accommodation at the December meeting, President Mario Draghi said.
"We will closely monitor the risks to price stability and thoroughly assess the strength and persistence of the factors that are slowing the return of inflation to levels below, but close to, 2%," Draghi told the European Parliament's Economic and Monetary Affairs Committee in Brussels .
The greenback bounced off to 123.05 against the yen and 1.5171 against the pound, from its early session's low of 122.74 and a weekly low of 1.5247, respectively. On the upside, the greenback may challenge resistance around 124.00 against the yen and 1.50 against the pound.
Reversing from an early 6-day low of 1.3225 against the loonie, the greenback climbed to 1.3280. The greenback is seen finding resistance around the 1.335 mark.
On the flip side, the greenback eased back to 1.0026 against the franc, from a 2-day high of 1.0085 hit at 3:45 am ET . At yesterday's close, the pair was worth 1.0044.
Looking ahead, Canada new house price index for September, US weekly jobless claims for the week ended November 7 and US crude oil inventory data are set to be announced in the New York session.
At 10:15 am ET , Federal Reserve Bank of Chicago President Charles Evans will deliver a speech about the economic outlook and monetary policy at the National Communities Council's Fall Leadership Forum in Chicago .
Bank of England Chief Economist Andy Haldane will speak at the Trades Union Congress in London , at 12:00 pm ET .
Shortly after, Federal Reserve Bank of New York President William Dudley is expected to speak about the economic outlook and monetary policy at the Economic Club of New York .
At 2:00 pm ET , US budget statement for the month of October is set to be published.