US Dollar Strengthens Ahead Of US GDP Data, Fed Chair Yellen's Speech
Canbera-Australia (Mar 27) The US dollar climbed against its major rivals in early European deals on Friday, as traders await U.S final GDP data, which is expected to reveal further economic expansion in the fourth quarter.
The Commerce Department will release the third estimate of fourth quarter GDP data at 8:30 am ET . The economy is expected to grow by 2.4%, up from the second estimate's 2.2%.
The US Federal Reserve Chair Janet Yellen is scheduled to speak at the Federal Reserve Bank of San Francisco Conference on "The New Normal for Monetary Policy" at 3:35 pm ET . Yellen's speech could give clues about the thinking of the central bank in the world's biggest economy.
Investors also look forward to the Reuters/ University of Michigan's consumer sentiment index and personal consumption figures for further hints about the economy.
The greenback ended Thursday's deals higher, supported by a set of encouraging data and a rise in US Treasury yields. Thursday, the greenback rose 0.36% against the franc, 0.78 against the euro and 0.24 against the pound.
Comments by two Fed officials on Thursday that the economy could be able to handle higher rates also boosted the dollar. In an interview with CNBC , Federal Reserve Bank of Atlanta President Dennis Lockhart said that the central bank is coming to a point where it is going to seriously look at a decision to raise rates. In a separate event, Federal Reserve Bank of St. Louis President James Bullard said it is appropriate for the central bank to begin normalizing monetary policy now, as keeping rates low for long period raise risk of asset bubbles.
The greenback added 0.7% to hit a 3-day high of 0.9691 against the franc, compared to Thursday's closing value of 0.9625. The next possible resistance for the greenback-franc pair is seen around the 0.98 zone.
The greenback advanced to 1.0800 against the euro, its strongest since March 23 . If the greenback continues rise, 1.05 is possibly seen as its next resistance level.
The greenback hit a weekly high of 1.4796 against the pound, adding 0.3% from yesterday's closing quote of 1.4844. On the upside, 1.45 is possibly seen as the greenback's next resistance level.
The greenback that closed Thursday's trading at 119.16 against the yen and 1.2479 against the loonie edged up to 119.48 and 1.2528, respectively. Next possible resistance for the greenback may be located around the 120.00 against the yen and 1.26 against the loonie.
The greenback appreciated to a 1-week high of 0.7542 against the NZ dollar and a 4-day high of 0.7775 against the Australian dollar, compared to yesterday's closing values of 0.7591 and 0.7827, respectively. The greenback is likely to find resistance around 0.75 against the kiwi and 0.77 against the aussie.
Looking ahead, at 6:30 am ET , US Federal Reserve Governor Stanley Fischer will deliver a speech titled "The Nonbank Financial Sector: Issues and Regulation" at the Deutsche Bundesbank Conference titled "Debt and Financial Stability - Regulatory Challenges" in Frankfurt .
Source: AllianceNews
