U.S. Dollar Advances Ahead Of Fed Speeches

2018-02-07 10:31

The U.S. dollar firmed against its major opponents in the European session on Wednesday, as traders focus on speeches by Federal Reserve officials for hints about the path for further rate hikes this year. New York Federal Reserve Bank President William Dudley participates as panelist at the European American Chamber of Commerce and Thomson Reuters' "Banking Culture: Still Room for Improvement?" event in New York at 8.30 am ET. Chicago Federal Reserve President Charles Evans will deliver a speech and discuss current economic conditions and monetary policy at the Iowa Bankers Association Bank Management Conference in Des Moines, Iowa at 11:15 am ET. Investors focus on political developments in Washington after House of Representatives on Tuesday passed another stopgap bill to avert government shut down. The spending bill was passed in a 245-182 vote in the Republican-controlled chamber. The bill has headed to Senate for a vote later in the day. The currency fell against its major rivals in the Asian session. The greenback bounced off to 109.25 against the yen, heading to breach a 2-day high of 109.71 set at 5:45 pm ET. The next possible resistance for the greenback is seen around the 112.00 level. Preliminary figures from the Cabinet Office showed that Japan's leading index declined more-than-expected at the end of the year. The leading index, which measures the future economic activity, dropped to 107.9 in December from 108.2 in November. Economists had expected the index to fall to 108.1. The greenback advanced to near a 2-week high of 0.9410 against the Swiss franc, reversing from an early low of 0.9340. On the upside, 0.96 is possibly seen as the next resistance level for the greenback. The greenback climbed to 1.2335 against the euro and 1.3873 against the pound, off its early lows of 1.2405 and 1.3993,respectively. If the greenback rises further, it may target resistance around 1.22 against the euro and 1.35 against the pound. The greenback bounced off to 0.7854 against the aussie and 1.2528 against the loonie, from its previous low of 0.7908 and a session's low of 1.2490, respectively. The greenback is seen finding resistance around 0.76 against the aussie and 1.28 against the loonie. The greenback remained in a positive territory against the kiwi with the pair trading at 0.7306. This may be compared to a low of 0.7346 hit at the beginning of today's deals. The pair finished Tuesday's deals at 0.7341. Looking ahead, Canada building permits for December are set for release in the New York session. At 8:30 am ET, the New York Fed President William Dudley speaks about banking culture at an event jointly hosted by Thomson Reuters and the European American Chamber of Commerce, in New York.