U.S. Dollar Rises After Fed Gov Waller's Hawkish Remarks

(RTTNews) - The U.S. dollar strengthened against other major currencies in the European session on Tuesday, following hawkish remarks from Federal Reserve Governor Christopher Waller.

Waller stated that since the U.S. job market is doing well and inflationary pressures are strong, more interest rate increases are required.

The policymaker also cautioned that that "half-point Fed rate hike may be needed in December, if October core CPI inflation comes in around 0.3 percent or higher".

Investors await the release of the U.S. CPI report for October later in the day for further cues on inflation and the Federal Reserve's interest-rate outlook.

Over the past few weeks, the U.S. dollar has generally stayed under pressure as global inflation expectations have been anchored by lower oil prices brought on by heightened prospects for a US-Iran deal.

In the European trading today, the U.S. dollar rose to 1.1218 against the euro and 0.5628 against the NZ dollar, from early five-day lows of 1.1252 and 0.5650, respectively. If the greenback extends its uptrend, it is likely to find resistance around 1.11 against the euro and 0.57 against the kiwi.

The greenback advanced to 1.3422 against the pound, from an early four-day low of 1.3459. On the upside, 1.33 is seen as the next resistance level for the greenback.

Against the yen and the Swiss franc, the greenback edged up to 158.17 and 0.8211 from early lows of 157.87 and 0.8174, respectively. The greenback may test resistance around 159.00 against the yen and 0.83 against the franc.

Against the Australia and the Canadian dollars, the greenback climbed to 0.6909 and 1.4140 from early lows of 0.6930 and 1.4105, respectively. The next possible resistance is around 0.68 against the Aussie and 1.43 against the loonie.

Looking ahead, the U.S. ADP weekly employment data, CPI data for October and WASDE report are slated for release in the New York session.