US Dollar Rallies Ahead of Powell’s Appearance
The US dollar rose against its major trading partners early Wednesday ahead of an appearance by Federal Reserve Chairman Jerome Powell and the release of wholesale trade data for September.
Earlier Wednesday, the Mortgage Bankers Association said mortgage applications rebounded in the week ended Nov. 3, lifted by a large decline in mortgage rates. Weekly Energy Information Administration oil stock data will not be released this week due to system upgrades. The EIA said they will resume publication next week.
Fed Governor Lisa Cook spoke earlier Wednesday, repeating that the US financial system remains resilient, but added that the Fed must remain vigilant regarding risks from abroad that could lead to more supply chain issues, reducing economic activity and increasing inflation.
A quick summary of foreign exchange activity heading into Wednesday shows that USDEUR fell to 1.0677 from 1.0701 at the Tuesday US close but was above the 1.0673 level at the same time Tuesday morning.
EU retail sales declined more than expected in September, data released earlier Wednesday showed. The next European Central Bank meeting is scheduled for Dec. 14.
GBPUSD fell to 1.2265 from 1.2299 at the Tuesday US close and 1.2288 at the same time Tuesday morning. There are no UK data on Wednesday’s schedule. The next Bank of England meeting is scheduled for Dec. 14.
BoE Governor Andrew Bailey said earlier Wednesday that interest rates will need to remain elevated for a period of time and the possibility of interest rate cuts has not been discussed, Bloomberg reported.
USDJPY rose to 150.7831 from 150.4054 at the Tuesday US close and 150.4462 at the same time Tuesday morning. The Reuters Tankan conditions index rose modestly in November while the Japanese leading index declined in September, data released overnight showed. The next Bank of Japan meeting is scheduled for Dec. 18-19.
USDCAD rose to 1.3781 from 1.3766 at the Tuesday US close and 1.3755 at the same time Tuesday morning. The Canadian leading index declined slightly in October, data released earlier Wednesday showed. September building permits are scheduled for release while data on consumer sentiment for November are set for release. The next Bank of Canada meeting is set for Dec. 6. Naira Devaluation Deepens Economic Crisis in Nigeria