The dollar rose to a three-month high against the yen and climbed versus
the euro after
Federal Reserve Chairman Ben S. Bernanke said economic risks have faded,
spurring traders to boost wagers interest rates will rise.
Bernanke said late yesterday that the central bank will ``strongly resist'' any
waning of public confidence in stable prices.
Futures on the Chicago Board of
Trade show a 55% chance the Fed will raise its 2% target rate for overnight
lending between banks by at least a quarter point at its Aug. 5 meeting,
compared with 9% the previous day. The contracts show a 95% chance the Fed will
increase the rate by December, up from 67% odds a week ago.
EUR/USD triggered stops on the break down the
$1.5550 level to lows around $1.5440.
GBP/USD remained under pressure, despite
strong statistic data, printing lows near $1.9512. Later pound rebounded to $1.9545.
USD/JPY rose from Y106.40 to Y107.40 after
exposing stops around Y107.15.
In Europe focus will be on UK labor market data at 08:30 GMT. There are no key US economic reports today.