2024.01.1916:07:00UTC+00U.S. Dollar Advances Against Majors

The U.S. dollar climbed against its major counterparts in the New York session on Friday, as traders pared back their expectations for early rate cuts from the Federal Reserve.

Solid U.S. economic data as well as recent hawkish comments from Fed officials triggered a shift in rate-cut expectations.

Atlanta Federal Reserve President Raphael Bostic said on Thursday he expects policymakers to start cutting rates in the third quarter of this year and the goal ahead is to calibrate policy to be not so restrictive.

U.S. treasury yields rose, with the benchmark 10-year yield touching 4.17 percent.

Consumer sentiment in the U.S. has improved much more than anticipated in the month of January, according to preliminary data by the University of Michigan.

The University of Michigan said its consumer sentiment index surged to 78.8 in January after jumping to 69.7 in December. Economists had expected the index to inch up to 70.0.

With the much bigger than expected increase, the consumer sentiment index reached its highest level since hitting 81.2 in July 2021.

The greenback advanced to a multi-week high of 0.8704 against the franc and near a 2-month high of 148.80 against the yen, off its early lows of 0.8668 and 147.83, respectively. The next possible resistance for the currency is seen around 0.90 against the franc and 151.00 against the yen.

The greenback edged up to 1.0865 against the euro and 1.2661 against the pound, from an early low of 1.0893 and a 3-day low of 1.2714, respectively. The greenback may find resistance around 1.05 against the euro and 1.24 against the pound.

The greenback recovered to 0.6570 against the aussie, from an early 3-day low of 0.6601. The greenback is likely to find resistance around the 0.63 level.

The greenback rose back to 0.6090 against the kiwi. This may be compared to a previous 2-day high of 0.6089. The greenback is poised to find resistance around the 0.59 level.

In contrast, the greenback fell to a 3-day low of 1.3454 against the loonie. The currency may possibly face support around the 1.32 level.