U.S. Dollar Climbs As Early Rate-cut Hopes Dim After Strong PPI Data

(RTTNews) - The U.S. dollar strengthened against its major counterparts in the European session on Thursday, as stronger-than-expected producer price index for January diminished likelihood of early interest rate cuts from the U.S. Federal Reserve.

Data from the Labor Department showed that the producer price index for final demand rose by 0.3 percent in January after edging down by 0.1 percent in December. Economists had expected producer prices to inch up by 0.1 percent.

Excluding prices for food, energy, and trade services, core producer prices climbed by 0.6 percent in January after rising by 0.2 percent in December.

Following the hotter-than expected consumer price inflation data released earlier this week, the data added to concerns the Fed will delay cutting interest rates longer than investors had hoped.

The greenback advanced to 1.0732 against the euro and 0.8839 against the franc, off its early lows of 1.0780 and 0.8789, respectively. The currency is poised to find resistance around 1.06 against the euro and 0.90 against the franc.

The greenback rose to 0.6086 against the kiwi and 0.6496 against the aussie, from its early lows of 0.6115 and 0.6529, respectively. The greenback may find resistance around 0.585 against the kiwi and 0.62 against the aussie.

The greenback moved up to 1.2548 against the pound, from an early 2-day low of 1.2605. The currency is likely to locate resistance around the 1.24 level.

Reversing from an early 3-day low of 1.3459 against the loonie, the greenback edged up to 1.3507. The currency is seen finding resistance around the 1.36 level.

The greenback touched 150.64 against the yen, setting a 2-day high. If the greenback rises further, it is likely to test resistance around the 152.00 region.