Dollar mixed ahead of Fed
May 1, 2019
The Bloomberg Dollar Index is lower for its fourth straight day as markets settle month-end positions ahead of this afternoon’s Fed decision. A number of holidays in Asia and Europe keep the dollar trading in a tight range.
“Life must be understood backward. But it must be lived forward.”Søren Kierkegaard
May 1, 2019
EUR/USD 1.1226 GBP/USD 1.3069 USD/CAD 1.3408 AUD/USD 0.7036 USD/JPY 111.34 USD/CNH 6.7291 USD/ILS 3.5889 USD/MXN 18.9445 USD/CHF 1.0160 USD/INR 69.5625
The greenback is softer ahead of the FOMC meeting this afternoon as the market looks for guidance on future monetary policy. There is currently no expectation of a rate hike and only a 2.6% expectation of a rate cut. President Trump has renewed his pressure on the Fed to cut interest rates, tweeting that the Fed should cut rates by 1% and implement more QE to help the US economy.GBP
The pound sterling touches two-week highs after reports emerged that PM May has made substantial progress in Brexit talks with her opposition Labour party. BoE will meet tomorrow with no policy change expected.EURThe euro gains for its fourth consecutive day after yesterday’s firmer than expected economic data continues to support the common currency. Anticipation of strong US data, particulary US payrolls on Friday, could return more bearish weight to the EUR/USD pair.CAD
The Canadian dollar weakens alongside other commodity currencies as crude prices and bond yields drop. BoC Governor Poloz warned yesterday of economic headwinds, but assured growth would pick up during the second half of the year.ASIA/PACIFIC
The Japanese yen settles slightly above its three week lows seen yesterday. Asian markets are relatively quiet due to a holiday.
New Zealand’s dollar is the weakest amongst G10 currencies after the release of poor employment data.
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