Yesterday's sell-off bleeds into today as the world's worries about an impending recession intensify. Despite a slight bounce in equities overnight, expectations of a larger Fed hike keep markets on the back foot. FOMC meeting begins today and markets are bracing for a large rate hike in reaction to Wall Street dipping into a bear market yesterday.
June 14, 2022
EUR/USD 1.0419 GBP/USD 1.2012 USD/CAD 1.2924 AUD/USD 0.6889 USD/JPY 134.84 USD/CNH 6.7410 USD/ILS 3.4677 USD/MXN 20.6672 USD/CHF 1.0000 USD/INR 77.9987 USD/BRL 5.1210 USD/SGD 1.3923 USD/DKK 7.1407 USD/SEK 10.2037 USD/NOK 9.9943
Dollar firm near two-year highs and mixed versus G-10s; rising versus the Australian dollar and pound, and falling against the euro. The FOMC two-day meeting begins today and traders have priced in a 99% chance of a 75bps hike to be announced tomorrow.GBPPound slides 50bps to sit just below 1.21 as traders position ahead of the Bank of England meeting this week. The pair printed a two-year low and is in view of the 1.20 level.EURThe euro picked up some ground after falling below 1.04 yesterday. Hawkish ECB speak helps the common currency but for the most part traders are refraining from any big bets until tomorrow's FOMC announcement.CAD
Canadian dollar slid for a fifth day versus the dollar despite advancing WTI prices. Risk off environment keeps USD strong.ASIA/PACIFIC
USD/JPY is largely unchanged following BoJ’s record purchase of bonds to manage the yield curve.
Aussie dollar slumped to one-month lows and sits below 0.70 as investors flee to quality affecting risk-sensitive currencies.
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