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The Bloomberg Dollar Spot Index pulls back from its highest level since inception (2013) as upbeat US data boosts risk assets. Investors provide some reprieve to the euro ahead of next week’s ECB meeting with expectations of its first rate hike in over 10 years. A weak GDP print in China spurs safe haven buying of the yen.
July 15, 2022
EUR/USD 1.0090 GBP/USD 1.1863 USD/CAD 1.3020 AUD/USD 0.6801 USD/JPY 138.57 USD/CNH 6.7572 USD/ILS 3.4663 USD/MXN 20.5920 USD/CHF 0.9783 USD/INR 79.8775 USD/BRL 5.3820 USD/SGD 1.3994 USD/DKK 7.3817 USD/SEK 10.4898 USD/NOK 10.1569
The dollar trades lower amongst most of its G-10 peers as risk appetite returns to equity markets following better than expected US retail sales and consumer sentiment data. Despite US manufacturing output declining in June for a second month, Fed officials are openly calling for larger rate hikes after a four-decade high inflation print earlier this week.GBP
Pound sterling climbs with focus on today’s first TV debates in the race to succeed Boris Johnson as Conservative leader and UK prime minister. The UK calendar for next week includes important inflation and retail sales data which will heavily influence the BOE’s policy guidance at their next meeting on August 4.EUR
The euro rallies slightly from dollar parity amid short covering ahead of this weekend’s meeting of G-20 finance ministers. Investors will intensely monitor the outcome of next Thursday’s ECB meeting after President Lagarde promised a 25-basis point rate increase at last month’s meeting.CAD
USD/CAD catches a bid as the US dollar weakens following comments from the Fed that point to the next rate hike being close to 75bps versus previously expected 100bps. WTI crude oil traded 2% higher also supporting the loonie.ASIA/PACIFIC
The Japanese yen reversed losses after trading at a 24-year low. JPY strengthens versus USD on weak economic data out of China and concerns around aggressive policy tightening in the US.
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