U.S. Dollar Higher On Fed Optimism
The U.S. dollar gained ground against its major rivals on
Tuesday, after Federal Reserve Chairman Jerome Powell said that
U.S. economic outlook has clearly brightened amid faster
vaccination rates and fiscal stimulus, but cautioned that the
economy is "not out of the woods yet."
"While the recovery is gathering strength, it has been slower
for those in lower-paid jobs," Powell said at a National Community
Reinvestment Coalition event on Monday.
The central bank is focused on these longstanding disparities as
they weigh on the productive capacity of the economy, he added.
New York Fed President John Williams noted that current
conditions are "not nearly enough" for a shift in the monetary
Investors await upcoming economic data to assess the strength of
the rebound in the economy.
Today's U.S. economic docket features trade data and factory
Other data that will be released in the week include ADP private
sector payrolls on Wednesday, weekly jobless data on Thursday and
nonfarm payrolls data on Friday.
Economists expect that nonfarm payrolls grew by 978,000 jobs in
April, up from March's gain of 916,000 jobs.
The greenback rose to 109.49 against the yen and 1.3851 against
the pound, off its early lows of 109.01 and 1.3912, respectively.
The next possible resistance for the greenback is seen around
112.00 against the yen and 1.37 against the pound.
The greenback advanced to a 6-day high of 0.9156 against the
franc and near a 2-week high of 1.2007 against the euro, up from
its early lows of 0.9097 and 1.2064, respectively. If the greenback
rises further, it may find resistance around 0.94 against the franc
and 1.18 against the euro.
The greenback edged up to 1.2317 against the loonie and 0.7712
against the aussie, reversing from its prior lows of 1.2273 and
0.7763, respectively. The greenback is poised to target resistance
around 1.25 against the loonie and 0.75 against the aussie.
The U.S. currency touched a fresh 2-week high of 0.7144 against
the kiwi, coming off from its previous low of 0.7204. On the
upside, 0.70 is possibly seen as its next resistance level.
Looking ahead, U.K. manufacturing PMI for April and mortgage
approvals data for March will be released in the European
U.S. and Canadian trade data, Canada building permits and U.S.
factory orders, all for March, are set for release in the New York