U.S. Dollar Strengthens As Fed's Williams Forecasts Another Rate Hike This Year
11 Luglio 2017 - 05:26AM
RTTF2
The U.S. dollar climbed against its major counterparts in the
Asian session on Tuesday, after San Francisco Fed President John
Williams downplayed recent slowdown in U.S. inflation and backed
one more rate hike by the Federal Reserve this year.
Speaking in Sydney, Williams said that recent softening in U.S.
inflation may be due to temporary factors and a strong economic
growth would enable the inflation to move back towards bank's 2
percent goal in the next year.
With the latest jobs report pointing to strong U.S. economy, it
was a reasonable view to forecast one more rate hike this year and
start adjusting the central bank's balance sheet in the next few
months, Williams noted.
The Fed Chair Janet Yellen is set to deliver her semiannual
testimony on monetary policy to the House Financial Services
Committee on Wednesday, and before the Senate Banking Committee on
Thursday.
Yellen's speech will be closely watched for assessments on the
U.S. economy and indications for further rate hikes in the
second-half of the year.
Investors focus on U.S. weekly jobless claims and producer price
index on Thursday, as well as the consumer price index, retail
sales, industrial production and consumer sentiment on Friday for
more clues about the health of the economy.
The greenback was higher on Monday, as upbeat U.S. jobs data
backed Fed rate hopes ahead of Yellen's speech this week.
The greenback advanced to 114.48 against the yen, its strongest
since March 15. The greenback is likely to find resistance around
the 118.00 region.
Data from the the Bank of Japan showed that Japan's M2 money
stock rose 3.9 percent on year in June, coming in at 976.6 trillion
yen.
That was in line with expectations and up from the downwardly
revised 3.8 percent increase in May.
The greenback that closed yesterday's trading at 0.9657 against
the franc climbed to a 6-day high of 0.9678. The greenback is seen
finding resistance around the 0.98 region.
The greenback edged up to 1.1383 against the euro and 1.2870
versus the pound, compared to Monday's closing values of 1.1399 and
1.2881, respectively. If the greenback extends rise, 1.11 and 1.27
are likely seen as its next resistance levels against the euro and
the pound, respectively.
The greenback advanced to near a 3-week high of 0.7225 against
the kiwi, compared to 0.7275 hit late New York Monday. The
greenback is poised to challenge resistance around the 0.71
region.
The greenback rose to 1.2906 against the loonie, from a low of
1.2885 hit at 10:00 pm ET. On the upside, 1.30 is likely seen as
the next resistance level for the greenback.
Looking ahead, at 6:00 am ET, the Bank of England Chief
Economist Andy Haldane participates in a panel discussion at the
'Essentials of Numeracy' launch event, in London.
At 7:00 am ET, the Bank of England Deputy Governor Ben Broadbent
speaks at the Scottish Council for Development and Industry, in
Aberdeen.
In the New York session, Canada housing starts for June and U.S.
wholesale inventories for May are due.
At 12:30 pm ET, the Federal Reserve Governor Lael Brainard
speaks about normalizing central banks' balance sheets at a
conference jointly sponsored by Columbia University and the Federal
Reserve Bank of New York.
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