Dollar Outperforms Ahead Of U.S. Economic Data
Monday, the U.S. dollar climbed against its major counterparts
at the start of a busy week packed with central bank meetings and
top-tier economic data, amid a quiet trading due to public holidays
in China and Japan.
The data is expected to show a strong rebound in U.S. activity
led by fiscal stimulus and further reopening of the economy.
Monday's data include ISM manufacturing PMI, followed by ADP
private sector payrolls on Wednesday. The focus will then shift to
the weekly jobless data on Thursday and nonfarm payrolls data on
Economists expect that nonfarm payrolls grew by 978,000 jobs in
April, up from March's gain of 916,000 jobs. Fed Chair Powell will
speak in an event hosted by the National Community Reinvestment
Coalition later in the day.
Caution prevailed in Asia amid surging COVID-19 cases in some
countries such as Japan and India.
The greenback appreciated to a 10-day high of 1.2013 against the
euro, while reaching 109.66 against the yen, its strongest level
since April 13. The greenback is likely to find resistance around
1.18 against the euro and 112 against the yen. The greenback rose
to a 5-day high of 0.9142 against the franc and more than a 2-week
high of 1.3801 against the pound, compared to Friday's closing
values of 0.9130 and 1.3816,respectively. If the greenback extends
rise, 0.94 and 1.34 are possibly seen as its next resistance levels
against the franc and the pound, respectively.
The greenback edged up to 0.7706 against the aussie, 0.7156
against the kiwi and 1.2311 against the loonie, off its early lows
of 0.7733, 0.7183 and 1.2269, respectively. On the upside, 0.75,
0.70 and 1.25 are possibly seen as its next resistance levels
against the aussie, the kiwi and the loonie, respectively.
Looking ahead, PMI reports from major European economies are due
in the European session.
U.S. ISM manufacturing PMI for April and construction spending
for March are set for release in the New York session.