Flows moved away from the dollar after Fed minutes revealed “even more restrictive” monetary policies could be enacted to combat inflation. Data out of the US yesterday was better than expected slightly easing concerns over slowing economic growth.
July 7, 2022
EUR/USD 1.0185 GBP/USD 1.1985 USD/CAD 1.2992 AUD/USD 0.6829 USD/JPY 135.80 USD/CNH 6.7008 USD/ILS 3.4827 USD/MXN 20.5780 USD/CHF 0.9728 USD/INR 79.17 USD/BRL 5.3590 USD/SGD 1.4001 USD/DKK 7.3065 USD/SEK 10.5315 USD/NOK 10.0999
Dollar eased and is weaker versus G-10 peers as equity futures rise fueled by China’s $220B stimulus plan. Fed minutes released yesterday confirmed the Fed plans to use more restrictive measures to control inflation. A 0.75% hike is expected at the July meeting and the minutes paved the way for a more restrictive stance if inflation persists.GBP
Pound jumped 0.40% following confirmation Boris Johnson will resign as UK Prime Minister. PM Johnson’s government has been marred by scandal for the last three years and this announcement follows dozens of resignations by officials in his government.EUREuro firms slightly versus the dollar as regional equities rise and as dollar cools off two-year highs. The pair trades just shy of 1.02 and hovers above 20 year lows.CAD
Canadian dollar is stronger versus the greenback falling 0.40% along with other G-10 currencies as inflation and recession concerns ease.ASIA/PACIFIC
USD/JPY is little changed after rising for three straight days.
Australian dollar rises extending gains 1% versus the US dollar.
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