U.S. Dollar Rises Ahead Of Inflation Data
(RTTNews) - The U.S. dollar strengthened against its most major counterparts in the New York session on Monday, as expectations for larger Fed rate cuts faded and investors awaited August inflation data due later this week.
The U.S. Labour Department will release the consumer price index early Wednesday and the producer price index before Thursday's open. Tame readings could give policymakers ammo for making a 50-bps rate cut on Sept. 18.
CME Group's FedWatch Tool is currently indicating a 75.0 percent chance the Fed will lower rates by 25 basis points and a 25.0 percent chance of a 50 basis point rate cut.
Elsewhere, the governing council of the European Central Bank will meet on Thursday, and it is widely expected that the board will reduce interest rates for the second time this year.
The greenback climbed to a 6-day high of 1.1034 against the euro, 5-day high of 0.8494 against the franc and near a 3-week high of 1.3067 against the pound, off its early lows of 1.1091, 0.8427 and 1.3143, respectively. The currency is seen finding resistance around 1.06 against the euro, 0.92 against the franc and 1.27 against the pound.
The greenback advanced to more than a 3-week high of 0.6647 against the aussie and near a 3-week high of 0.6124 against the kiwi, from its early lows of 0.6689 and 0.6186, respectively. The currency is likely to locate resistance around 0.63 against the aussie and 0.60 against the kiwi.
The greenback rose to 1.3577 against the loonie. If the currency strengthens further, it is likely to test resistance around the 1.38 region.
Meanwhile, the greenback retreated against the yen and was trading at 142.73. The currency is poised to challenge support around the 141.00 level.
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