The U.S. dollar continued to trade in a positive territory on Wednesday, after data showed that the durable goods orders showed an unexpected increase in July, as the Fed considers rate hike this year.
The Commerce Department released a report showing that durable goods orders climbed by 2.0 percent in July after jumping by an upwardly revised 4.1 percent in June. The continued increase surprised economists, who had expected orders to drop by 0.4 percent.
Traders keenly await the Jackson Hole symposium kicking off this weekend, where the Federal Reserve Vice Chairman Stanley Fischer will speak in place of the Chairwoman Janet Yellen. Investors are deeply focused on the Fed’s plans for its lift-off in rate, as the recent financial-market turmoil raise doubts over a September rate hike.
The currency fared well on Tuesday, on the back of positive U.S. economic data. The consumer confidence increased in August and new home sales showed a notable rebound in July, separate reports showed.
The greenback has been trading in a positive territory against its major rivals, except the pound, in the Asian session.
In European deals, the greenback appreciated to 1.5561 against the Sterling, its highest since August 18, and was up by 1 percent from an early low of 1.5722. The greenback is likely to find resistance around the 1.545 level. The pair ended Tuesday’s trading at 1.5685.
Figures from the British Bankers’ Association showed that U.K. mortgage approvals rose for a seventh month in a row in July to their highest level in seventeen months, in line with economists’ expectations.
The seasonally adjusted number of mortgage approvals for house purchased climbed to 46,033 from 44,802 in June, which was revised from 44,488. Economists had forecast 46,000 approvals for July.
Bouncing off from an early low of 1.1563 against the euro, the greenback climbed to a 5-day high of 1.1351. The greenback is seen finding resistance surrounding the 1.12 region. The euro-greenback pair was worth 1.1512 when it closed yesterday’s trading.
The greenback edged up to 0.9482 against the Swiss franc and 119.91 against the yen, reversing from its previous lows of 0.9382 and 118.44, respectively. The next possible resistance levels for the greenback may be found around 0.96 against the franc and 121.00 against the yen.
The greenback bounced back to 0.6474 against the kiwi, coming off from an early low of 0.6523. If the greenback extends rally, it may locate resistance around the 0.625 area.
At 10:00 am ET, Federal Reserve Bank of New York President William Dudley will speak on the regional economic outlook and efforts to support the Second District at a briefing hosted by the Federal Reserve Bank of New York.
The material has been provided by InstaForex Company – www.instaforex.com