U.S. Dollar Climbs As Irma Impact Lessens, N.Korea Worries Ease
The U.S. dollar advanced against its most major counterparts in early European deals on Monday, as geopolitical tensions eased after North Korea refrained from launching new missile over the weekend and fears about hurricane Irma waned.
Hurricane Irma was downgraded to a Category 1 storm as it moved into northern Florida and carried maximum sustained winds of about 85 miles per hour. It was a category four storm when it hit Florida on Sunday, cutting off power to 2 million people. Geopolitical tensions simmered after North Korea did not conduct a missile test over the weekend despite speculation that it would do so.
The United Nations prepared to vote on a new round of sanctions against North Korea. The draft resolution by the U.S. called for imposing stringent sanctions on North Korea, including a ban on all oil and natural gas exports to the country and a freeze of all foreign financial assets of the government and its leader. Today's economic calendar is rather light, with investors watching U.S. producer prices on Wednesday, consumer inflation report on Thursday, followed by industrial production and consumer sentiment on Friday for more clues about the economy.
The currency has been trading in a positive territory in the Asian session.
The greenback climbed to 4-day highs of 1.1993 against the euro and 0.9512 versus the franc, from Friday's closing values of 1.2035 and 0.9439, respectively. If the greenback extends rise, 1.18 and 0.98 are likely seen as its next resistance levels against the euro and the franc, respectively.
The greenback hit 108.61 against the yen, its highest since September 9. At Friday's close, the pair was valued at 107.84. Continuation of the greenback's uptrend may see it challenging resistance around the 110.00 area.
Data from the Bank of Japan showed that Japan's M2 money stock rose 4.0 percent on year in August, coming in at 978.0 trillion yen.
That was unchanged from the July reading, although it was shy of estimates for a gain of 4.1 percent.
The greenback that closed last week's trading at 0.8054 versus the aussie advanced to a 4-day high of 0.8028. The greenback is seen finding resistance around the 0.79 mark.
On the flip side, the greenback weakened to 1.3199 against the pound, after having advanced to 1.3168 at 1:15 am ET. On the downside, 1.34 is likely seen as the next support for the greenback.
Looking ahead, Canada housing starts for August is due at 8:15 am ET.