Soft US economic data released overnight and this morning fail to deter dollar bulls as traders await policy clues at this morning’s gathering of top central bankers in Sintra, Portugal. Mixed inflation numbers out of the eurozone complicate next month’s ECB meeting where pressure of front-loading rate hikes mounts. Canada wraps-up a successful G-7 summit in Bavaria which promises deeper energy infrastructure and momentum for petrocurrencies.
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June 29, 2022
EUR/USD 1.0490 GBP/USD 1.212 USD/CAD 1.2877 AUD/USD 0.6881 USD/JPY 136.83 USD/CNH 6.7009 USD/ILS 3.4577 USD/MXN 20.1356 USD/CHF 0.9523 USD/INR 78.9675 USD/BRL 5.2308 USD/SGD 1.3910 USD/DKK 7.0916 USD/SEK 10.1938 USD/NOK 9.8537
The dollar is stronger as traders digest recent data that will unlikely ease inflation and global growth concerns which have muted risk appetite. Personal consumption and quarterly GDP data complimented weak US consumer confidence and manufacturing survey numbers overnight.GBP
Pound sterling slides lower against the dollar and euro as markets prioritize month-end repositioning and commentary by BOE Governor Bailey at this morning’s Sintra panel with fellow central bank chiefs.EUR
The euro pared earlier losses and trades lower as conflicting inflation reports flummoxed investors. A report from one German state showed cooling prices, while Spanish inflation surged to a record 10% which may embolden the ECB when they kick-off next month.CAD
The Canadian dollar sheds earlier gains as WTI crude prices climbed higher for the fourth straight day. Developments at the G-7 meeting in Bavaria were viewed as positive for Canada as PM Trudeau signaled expanding energy infrastructure to help transition Europe away from Russian oil.ASIA/PACIFIC
The yen has given back earlier gains during the Asia session as US and JPY bond yields fell on concern global monetary tightening will hamper growth.
Australian retail sales rose 0.9% in May, more than double what economists had expected, yet the currency declined as markets weigh a dimmer global policy outlook at this morning’s Sintra panel.
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