U.S. Dollar Advances Ahead Of Jackson Hole Meeting

(RTTNews) - The U.S. dollar firmed against its most major opponents in early European deals on Thursday, as traders await the annual central banking conference in Jackson Hole, Wyoming, starting today for signals on future monetary policy actions by the world's major central banks. The Fed Chair Janet Yellen will speak on financial stability tomorrow, while the ECB chief Mario Draghi is scheduled to speak on the topic of the Symposium 'Fostering a Dynamic Global Economy.' Yellen's remarks will be closely scrutinized for the central bank's plans to unwind its balance sheet and raise interest rates this year.

Meanwhile, Fitch Ratings said the U.S.'s sovereign rating would be in jeopardy if Congress can't get a deal done to raise the federal debt ceiling in a timely manner.

The day's economic calendar remains light, with reports on U.S. initial jobless claims and existing home sales slated for release later in the day.

The currency fell on Wednesday after the U.S. President Donald Trump threatened to terminate NAFTA at some point and said he would be willing to let the government shut down if his border wall with Mexico isn't funded. The currency has been trading in a positive territory in the Asian session. The greenback reversed from an early 2-day low of 108.85 against the Japanese yen, rising to 109.39. The greenback is likely to challenge resistance around the 111.00 region.

Data from the Cabinet Office showed that Japan's leading index improved less than initially estimated in June.

The leading index, which measures the future economic activity, climbed to 105.9 in June from 104.7 in May. The reading for June was revised down from 106.3.

The greenback that closed Wednesday's trading at 1.1806 against the euro edged up to 1.1786. The next possible resistance for the greenback is seen around the 1.15 area.

The greenback bounced off to 1.2784 against the pound, from a low of 1.2813 hit at 3:30 am ET. This may be compared to near a 2-month peak of 1.2774 hit at 2:00 am ET. On the upside, 1.26 is possibly seen as the next resistance for the greenback.

The greenback spiked up to an 8-day high of 0.7867 against the aussie and more than a 2-month high of 0.7192 against the kiwi and held steady thereafter. The greenback ended Wednesday's deals at 0.7903 against the aussie and 0.7223 against the kiwi. The greenback may challenge resistance around 0.77 against the aussie and 0.70 against the kiwi.

Reversing from an early 2-day low of 1.2537 against the loonie, the greenback ticked up to 1.2561. The greenback is seen finding resistance around the 1.27 mark.

On the flip side, the greenback eased back to 0.9643 against the Swiss franc, on track to pierce its early 2-day low of 0.9636. The greenback was worth 0.9656 against the franc when it ended deals on Wednesday.

Looking ahead, U.S. weekly jobless claims for the week ended August 19 and existing home sales for July are due in the New York session.

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