Forex News: U.S. Dollar Rises Amid Fed Rate Hike Speculation

U.S. Dollar Rises Amid Fed Rate Hike Speculation

(RTTNews) - The U.S. dollar strengthened against most major currencies in the European session on Tuesday, as traders anticipate that the Federal Reserve (Fed) will raise interest rates twice more this year.

Additionally, the CME FedWatch tool indicates a 60% chance that the Fed would raise interest rates by a quarter to a percent during the two policy meetings left this year.

Investors will concentrate on the August JOLTS Job Openings data for the United States (US) later in the day.

According to the US Job Openings report, employers in the U.S. posted 7.23 million new positions, which is slightly less than the 7.271 million jobs posted in July.

European stock markets traded lower as investor sentiment is likely to be impacted by the surge in crude oil prices and the spike in bond yields. Worries about artificial intelligence is also expected to weigh on sentiment.

In the European trading today, the U.S. dollar rose to more than a 3-month high of 1.1334 against the euro, a 4-month high of 0.8350 against the Swiss franc and nearly a 3-month high of 1.4200 against the Canadian dollar, from early lows of 1.1372, 0.8319 and 1.4173, respectively. If the greenback extends its uptrend, it is likely to find resistance around 1.12 against the euro, 0.85 against the franc and 1.43 against the loonie.

Against the pound, the greenback edged up to 1.3224 from an early low of 1.3255. The greenback may test resistance around the 1.31 region.

Looking ahead, Canada GDP data for July, U.S. Redbook report and U.S. S&P/Case-Shiller home price for July, U.S. Dallas Fed services index for September and U.S. Consumer Board's consumer confidence for September are slated for release in the New York session.

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