Dollar hits new YTD highs, Canadian interest rate remarks due out this morning
Kathryn Garvey | April 24, 2019
“The mind is not a vessel to be filled but a fire to be kindled”Plutarch
April 24, 2019
EUR/USD 1.1193 GBP/USD 1.2948 USD/CAD 1.3450 AUD/USD 0.7029 USD/JPY 111.82 USD/CNH 6.7278 USD/ILS 3.6162 USD/MXN 19.0255 USD/CHF 1.0183 USD/INR 69.8700
USDThe dollar is higher again today, hitting new 2019 highs following the trend of the S&P 500 and Nasdaq, which both closed at record highs yesterday. Investors continue to run to stocks as the Fed remains on pause and weak European currencies provide strength to the dollar. MBA mortgage applications fell 7.3% last week vs falling -3.5% the week before.GBPSterling is again trading below $1.30 this morning, weighed down by a strong US dollar and ongoing Brexit concerns. UK local elections at the end of the month are looming and the Tory party could lose votes depending on the outcome. Senior MPs are pushing for PM May to resign before the elections. Meanwhile, she is said to be working on a fourth agreement to bring to Parliament.EUR
The euro slid lower again today after hitting a near six-month low yesterday. German IFO index worsened unexpectedly and French factory confidence fell to the lowest level in nearly four years. No other releases are on the economic calendar and trade news has been quiet.CADThe dollar hit seven week highs against the loonie this morning ahead of the BOC interest rate announcement. Governor Stephen Poloz and Sr. Deputy Gov. Carolyn Wilkins are set to deliver a speech on the monetary policy decision this morning. Rates are expected to remain unchanged at 1.75% and traders will be focused on the tone of the remarks accompanying the decision.ASIA/PACIFIC
US and Chinese delegates will meet in Beijing next week to continue US-China trade negotiation, targeting a draft agreement by the end of May. China’s 10 year sovereign yields moved higher as PBoC signaled the central bank is moving away from easing.
The aussie is weakest among the major currencies this morning after weaker than expected CPI data in Australia and the Reserve Bank signaled a possible rate cut by the end of the year.
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