US Dollar Climbs Ahead Of Fed Chair Yellen's Speech

November 12, 2015

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.

Source: RTTnews

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