FOREX: Dollar climbs higher in renewed strenght

The US dollar continues to climb higher in renewed strength after the release of mixed economic report and Yellen"s testimony before  the congressional Joint Economic Committee.

The US CPI mom rose 0.4% in line with expectation, but Core CPI rose 0.1% below expectation of 0.2%. The CPI rose to 1.6% year-on year in October. Core CPI, however dropped to 2.1% yoy. Initial jobless claims dropped 19,000 to 253,000 Vs 259,000 expected. Housing start rose to a nine-year high at 1.32m annualised rate in October, above expectation of 1.6m. Building permits rose to 1.2m above expectation of 1.20m. Phily Fed manufacturing index printed 7.6% vs 8.1% expected

US Federal Reserve Chair, Janet Yellen  said on Thursday, before congress that a rate hike could be appropriate "relatively soon". She also acknowledged that the US economy has picked up from subdued pace.

Following the hawkish comments from Yellen, many investors bought the US dollar and the pair subsequently breached the 110 handle. The dollar index also extending gains.


Friday Nov 18 
Key events (GMT + 1)

• 8.00am EUR German PPI m/m; estimate 0.3%
• 9.30am ECB President Draghi speaks
• 10.00am ECB Current account; estimate 31.1B
• 10.10am MPC Member Broadbent speaks
• 2.30pm CAD Core CPI m/m; estimate 0.3%
• 2.30pm CAD CPI m/m; estimate 0.2%
• 3.30pm USD FOMC Member Dudley speaks
• 3.30pm USD FOMC Member Geaoge speaks