24th Feb 2015 09:46
CANBERA (Alliance News) - The US dollar climbed against its most major rivals in early European deals on Tuesday, ahead of testimony by the US Federal Reserve Chairwoman Janet Yellen before the Senate Banking Committee later in the day.
Yellen's hearing is closely watched for more hints about central bank's plan for raising interest rates for the first time since 2006. Traders await further clues about the Fed's assessment of the US economy, as recent economic data has not been robust.
In its January meeting, the Fed indicated the possibility of rate hike by mid-2015 but the exact timing of the first rate hike is not certain.
Yellen will deliver her semi-annual testimony before Financial Services Committee on Wednesday.
Investors focus on developments in Greece, after it unveiled a summary of reform proposals on Monday evening containing measures that had been widely anticipated. Media reports suggest that the measures include plans to pursue labor reforms, fight tax evasion and tackle fuel and tobacco smuggling.
As Greece races to secure a four-month extension of its debt bailout, the list must be approved by the so-called "Troika" of lenders - the EU, the International Monetary Fund and the European Central Bank - before a Eurogroup discussion later today.
The greenback strengthened to a 6-day high of 119.36 against the yen, compared to 118.80 hit late New York Monday. The next possible resistance for the greenback-yen pair is seen around the 120.00 zone.
The greenback reached as high as 1.1310 against the euro, off early low of 1.1340. If the greenback continues its rise, it may find resistance around the 1.10 mark.
The German economy gained momentum towards the end of 2014 as initially estimated driven by foreign demand and household spending, data from Destatis showed.
Gross domestic product grew 0.7% in the fourth quarter from last quarter, when it was up 0.1%.
The greenback firmed to a 1-week high of 0.7743 against the aussie, near 2-week highs of 0.7436 against the kiwi and 1.2646 against the loonie. Next key resistance for the greenback may be located around 0.75 against the aussie, 0.725 against the kiwi and 1.27 against the loonie.
The greenback advanced to 0.9522 against the franc at 3:20 am ET, before moving off slightly shortly thereafter. The pair finished Monday's trading at 0.9494.
The greenback reversed from an early high of 1.5429 against the pound, edging down to 1.5465. At yesterday's close, the pair was quoted at 1.5455.
Looking ahead, final Eurozone CPI data for January is set to be published shortly.
At 5:00 am ET, the Bank of England Governer Mark Carney and several MPC members testify on inflation and the economic outlook before Parliament's Treasury Committee, in London.
In the New York session, US S&P/Case-Shiller house price index for December and Markit's US flash PMI reports, Conference Board's US consumer confidence index and US Richmond Fed manufacturing index - for February are due to be released.
At 9:00 am ET, European Central Bank President Mario Draghi will deliver a speech at an event to unveil the new 20 euro banknote in Frankfurt.
Subsequently, Yellen will testify on the Semiannual Monetary Policy Report before the Senate Banking Committee in Washington DC at 10:00 am ET.
At 1:45 pm ET, Bank of Canada Governor Stephen Poloz will deliver a speech at the Western University, followed by news conference in London, Ontario.
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