The dollar clings onto another impressive quarter as month-end flows and soft US data make for choppy price action. French inflation touches record highs and puts key focus on the entire 19-member eurozone CPI figure due Friday. UK household income numbers heighten recession fears and support global risk-off sentiment with world equity indices down across the board.
June 30, 2022
EUR/USD 1.0418 GBP/USD 1.2178 USD/CAD 1.2895 AUD/USD 0.6905 USD/JPY 135.93 USD/CNH 6.6943 USD/ILS 3.5013 USD/MXN 20.2183 USD/CHF 0.9555 USD/INR 78.9750 USD/BRL 5.2461 USD/SGD 1.3927 USD/DKK 7.1397 USD/SEK 10.2872 USD/NOK 9.9141
The Bloomberg Dollar Spot Index is tracking its best quarter since 2016 and set for its fourth consecutive quarterly advance. US Personal spending and inflation data released this morning adds to growing concerns of a general pullback rather than just rotation of consumer preferences.GBP
The pound pares earlier gains and faces its steepest quarterly loss versus the dollar since 2008. Disposable household income data in the UK showed four straight quarters of decline which is the longest run since records began in 1955.EUR
The euro is on pace for its worst quarterly performance vs. USD in six years. French inflation hit levels unseen since the introduction of the common currency. The reading further justifies the ECB’s plan to hike interest rates for the first time in 11 years at next month’s meeting.CAD
The loonie trades slightly weaker this morning and has fallen more than 3% against the greenback this quarter; yet outperforms all of its G-10 peers within the same period. Canada’s GDP numbers printed as expected and WTI crude is positioned for its first monthly drop this year.ASIA/PACIFIC
The yen reached a 24-year low versus the dollar late yesterday but has pared declines as US PCE data this morning mostly met expectations and traders consolidate month-end positions. The BOJ will maintain the amount and frequency of their bond buying program for the third quarter which may be a catalyst to sell yen in sessions ahead.
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