Growing expectations that the Fed is poised to raise rates at least once this year lifted the dollar to a one-month high against the yen today. The dollar broke above the 103 level on Monday for the first time since the end of July and extended its gains to 103.27 during today’s Asian session.
Fed Vice Chair Stanley Fischer yesterday reiterated Yellen’s views when she spoke in Jackson Hole last Friday that the US labor market is nearing full employment but that a Fed rate hike would depend on the incoming data. However, Fischer’s remarks that the US economy has been able to withstand a stronger US currency had more of an impact on the greenback pushing the dollar index to a 3-week high yesterday.
The euro continued to come under pressure with the single currency dropping to a 3-week low of 1.1129 dollars today. But sterling reversed some of yesterday’s losses at the start of today’s Asian session following the release of stronger-than-expected UK consumer confidence data. The GfK consumer confidence index beat expectations to recover from its post-Brexit plunge to -12 in July to rise to -7 in August. The pound was last trading slightly firmer at 1.3090 dollars.
The yen continued to see a broader weakness today as worse-than-expected industrial output figures, as well as comments from a BoJ policymaker weighed on the Japanese currency. Industrial production in Japan was flat in July according to the preliminary estimate, confounding expectations that it would rise by 0.8% over the month. Meanwhile, speaking earlier today, Bank of Japan board member Yukitoshi Funo said the central bank will “deploy all easing tools” to achieve its 2% price target.
The comments helped the euro and the pound rise to one-month highs against the Japanese currency, which rose to 115.08 and 135.25 yen respectively.
In commodities, crude oil prices steadied from overnight losses following another rise in US crude stocks in the week ending August 26 according to the data from the American Petroleum Institute. US crude futures were last trading at $46.25 a barrel, while Brent crude firmed in today’s Asian session to around $48.35.
Gold was one of the better performing commodities today as prices rebounded from yesterday’s two-month lows. The yellow metal was last up 0.2% at $1312.50 an ounce.
Weaker commodity prices and the stronger US dollar dragged the Australian dollar to near one-month lows. The aussie was struggling to hold above the 0.75 level against the greenback in Asian trading today.
Coming up later in the day, Eurozone flash inflation and unemployment data will be watched in the European session, while in the US session, the ADP employment report and pending home sales out of the US, as well as Canadian GDP figures will come into focus.
Fed Vice Chair Stanley Fischer yesterday reiterated Yellen’s views when she spoke in Jackson Hole last Friday that the US labor market is nearing full employment but that a Fed rate hike would depend on the incoming data. However, Fischer’s remarks that the US economy has been able to withstand a stronger US currency had more of an impact on the greenback pushing the dollar index to a 3-week high yesterday.
The euro continued to come under pressure with the single currency dropping to a 3-week low of 1.1129 dollars today. But sterling reversed some of yesterday’s losses at the start of today’s Asian session following the release of stronger-than-expected UK consumer confidence data. The GfK consumer confidence index beat expectations to recover from its post-Brexit plunge to -12 in July to rise to -7 in August. The pound was last trading slightly firmer at 1.3090 dollars.
The yen continued to see a broader weakness today as worse-than-expected industrial output figures, as well as comments from a BoJ policymaker weighed on the Japanese currency. Industrial production in Japan was flat in July according to the preliminary estimate, confounding expectations that it would rise by 0.8% over the month. Meanwhile, speaking earlier today, Bank of Japan board member Yukitoshi Funo said the central bank will “deploy all easing tools” to achieve its 2% price target.
The comments helped the euro and the pound rise to one-month highs against the Japanese currency, which rose to 115.08 and 135.25 yen respectively.
In commodities, crude oil prices steadied from overnight losses following another rise in US crude stocks in the week ending August 26 according to the data from the American Petroleum Institute. US crude futures were last trading at $46.25 a barrel, while Brent crude firmed in today’s Asian session to around $48.35.
Gold was one of the better performing commodities today as prices rebounded from yesterday’s two-month lows. The yellow metal was last up 0.2% at $1312.50 an ounce.
Weaker commodity prices and the stronger US dollar dragged the Australian dollar to near one-month lows. The aussie was struggling to hold above the 0.75 level against the greenback in Asian trading today.
Coming up later in the day, Eurozone flash inflation and unemployment data will be watched in the European session, while in the US session, the ADP employment report and pending home sales out of the US, as well as Canadian GDP figures will come into focus.