The U.S. dollar strengthened against its major counterparts in early European deals on Tuesday, as investors await Fed Chairman Jerome Powell’s testimony before U.S. Congress to help gauge whether the central bank would cut rate later this month.
With a strong June U.S. jobs report dashing investors’ expectations of an imminent interest-rate cut, investors wait to see whether the language will mark a clear shift from the Fed’s earlier ‘patient’ stance.
Powell is due to testify before the House Financial Services Committee on Wednesday and before the Senate Banking Committee on Thursday.
Wednesday will also see the release of the minutes of the Fed’s last monetary policy meeting, which may shed additional light on the central bank’s decision to make notable changes to its accompanying statement.
Fed Chairman Powell is scheduled to deliver opening remarks at a Boston Fed conference on “Stress Testing” later today but may refrain from directly addressing interest rates.
The currency rose against its major counterparts in the Asian session, excepting the euro.
The greenback advanced to 1.2479 against the pound, a level unseen so far this year. On the upside, 1.23 is possibly seen as the next resistance for the greenback.
The greenback approached near the key 1.12 level against the euro, rising to near a 3-week high of 1.1205. If the greenback extends rise, 1.09 is possibly seen as its next resistance level.
The U.S. currency firmed to 0.9950 against the franc, its biggest since June 19. The next possible resistance for the greenback is seen around the 1.02 mark.
The greenback that closed Monday’s trading at 108.72 against the yen spiked higher to near a 6-week high of 108.91. The greenback is poised to challenge resistance around the 111.00 region.
The greenback appreciated to a new 2-week high of 0.6937 against the aussie, 4-day highs of 1.3129 against the loonie and 0.6609 against the kiwi, off its early lows of 0.6975, 1.3087 and 0.6632, respectively. The greenback is seen facing resistance around 0.67 against the aussie, 1.33 against the loonie and 0.645 against the kiwi.
Looking ahead, Canada housing starts for June and building permits for May are scheduled for release in the New York session.
Federal Reserve Chairman Jerome Powell will give opening remarks at an event hosted by the Federal Reserve Bank of Boston at 8:45 am ET.
Federal Reserve Bank of St. Louis President James Bullard is set to speak at the Official Monetary and Financial Institutions Forum Meeting in Saint Louis at 10:10 am ET.
At 2:00 pm ET, Federal Reserve Governor Randal Quarles will deliver a speech about stress testing at an event hosted by the Federal Reserve Bank of Boston.
The material has been provided by InstaForex Company – www.instaforex.com