U.S. Dollar Regains Momentum Amid Growing Fed Rate Hike Expectations

By RTTNews Staff Writer   ✉   | Published:

The U.S. dollar regained strength during the European session on Monday, as Friday's jobs data boosted chances of a 25 basis-point rate hike by the Federal Reserve in May.

U.S. non-farm payrolls increased 236,000 in March, in line with expectations of 239,000.

The odds of another Fed rate hike in May jumped to 66.7 percent following payrolls report.

Investors await a closely watched inflation report as well as the release of minutes of the Fed's March meeting this week for additional clues on the economic and rate outlook.

Other key data include the producer price index, retail sales and University of Michigan's preliminary consumer sentiment index.

The greenback appreciated to 1-week highs of 133.38 against the yen, 1.2344 against the pound and 1.0846 against the euro, from its prior lows of 131.83, 1.2442 and 1.0917, respectively. The currency is seen facing resistance around 138.00 against the yen, 1.21 against the pound and 1.06 against the euro.

The greenback was up against the franc, at a 6-day high of 0.9104. On the upside, 0.94 is possibly seen as its next resistance level.

The greenback firmed to near a 4-week high of 0.6620 against the aussie, 2-week high of 0.6193 against the kiwi and a 10-day high of 1.3553 against the loonie, off its early lows of 0.6680, 0.6256 and 1.3484, respectively. Next immediate resistance for the currency is seen around 0.63 against the aussie, 0.60 against the kiwi and 1.37 against the loonie.

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