US Dollar Extends Rise Amid Fed Rate Hike Expectations
Sydney-Australia (Nov 30) The US dollar continued to be strong against the other major currencies in the early European session on Monday, as traders bet that the US jobs data due this week is likely to support a Fed rate hike from near zero.
The market expect the US non-farm payrolls to have grown by 200,000 in November and unemployment to come in at 5%.
Federal Reserve Chair Janet Yellen is also scheduled to deliver two speeches this week, joining several other Fed officials who are due to give remarks.
The Federal Reserve's Monetary Policy Committee is set to meet on December 15-16 .
Additionally, the European Central Bank is scheduled to hold a monetary policy meeting on Thursday, with many expecting the bank to provide further stimulus.
In the Asian trading today, the US dollar rose against most major rivals amid risk aversion, as investors were cautious after the sell-off in the Chinese markets last Friday.
In early European trading, the US dollar rose to a 7-1/2-month high of 1.0563 against the euro and more than a 7-month high of 1.5001 against the pound, from early lows of 1.0595 and 1.5050, respectively. If the greenback extends its uptrend, it is likely to find resistance around 1.04 against the euro and 1.49 against the pound.
Against the yen and the Canadian dollar, the greenback advanced to 1-week highs of 123.14 and 1.3393 from early lows of 122.69 and 1.3356, respectively. The greenback is likely to find resistance around 124.00 against the yen and 1.36 against the loonie.
The greenback edged up to 1.0319 against the Swiss franc, from an early low of 1.0294. The greenback may test resistance near the 1.04 region.
Meanwhile, the greenback edged down to 0.7207 against the Australian dollar and 0.6564 against the NZ dollar, from an early 1-week high of 0.7170 and a 6-day high of 0.6514, respectively. Thereafter, the greenback held steady against both the currencies.
Looking ahead, preliminary German CPI data for November, Canada current account data for the third quarter, US pending home sales data for October and US Chicago PMI for November are set to be published in the New York session.
At 1:25 pm ET , European Central Bank member and Bank of Spain Governor Luis Maria Linde will deliver the speech "Situation and Outlook for the Spanish Economy" at Palma De Mallorca, in Spain
Source: AllianceNews
