Dollar Strengthens To Multi-day Highs Against European Majors
The dollar climbed to multi-day highs against the currencies of Europe, U.K. and Switzerland during early Asian deals on Monday, the first trading day of 2010, as investors focus on U.S. data this week that could add to optimism about the economy.
But the dollar did not show any major reaction against the yen during this time.
Investors are set to take cues from the U.S. December employment report on Friday as well as figures from the manufacturing and service sectors.
The Institute of Supply Management is scheduled to release the results of its manufacturing survey at 10:00 am ET today. The manufacturing index is likely to show a reading of 54.5 for December.
At the same time, the Commerce Department’s construction spending report to be released is expected to show a 0.5% decline in spending for November.
The dollar rose to a 4-day high of 1.6091 against the pound in early Asian deals on Monday at 9:00 pm ET. The next upside target level for the dollar is seen at 1.605. As of now, the pound-dollar pair is worth 1.6095.
During early Asian deals on Monday, the dollar gained against the currencies of Europe and Switzerland. At 8:40 pm ET, the dollar reached a 5-day high of 1.0399 against the franc and a 12-day high of 1.4259 against the euro. If the dollar advances further, it may target 1.042 against the franc and 1.422 against the euro. Currently, the dollar is worth 1.4280 against the euro and 1.0380 against the franc.
The dollar fell to 92.71 against the yen at 6:45 pm ET Sunday. Although the dollar recovered thereafter, it eased again after reaching a high of 93.09 at 8:40 pm ET. At present, the dollar-yen pair is worth 92.90.
In the upcoming European session, the manufacturing PMI reports from the major European economies, Euro-zone sentix investor confidence, Italian preliminary CPI- all for the month of December and the U.K. final M4 money supply report for November are expected to influence trading.
