The dollar direction is mixed; IMF lowers World Economic Outlook
Laurence Hayward | April 10, 2019
The dollar is tracking sideways against most major currencies. Oil prices are back above $64 a barrel helped by a possible supply interruption from Libya due to the escalating civil war. The IMF lowered its world economic outlook to 3.3% GDP this year, its fourth downgrade in the last nine months.
“What can be shown, cannot be said.”
April 10, 2019
EUR/USD 1.1242 GBP/USD 1.3074 USD/CAD 1.3345 AUD/USD 0.7138 USD/JPY 111.08 USD/CNH 6.7228 USD/ILS 3.5816 USD/MXN 18.8421 USD/CHF 1.0017 USD/INR 69.1150
The dollar is in the same range as the last couple of days. Today’s CPI inflation data came in about as expected at +0.4% in March and rose to 1.9% y/y from 1.5% in February. Real average hourly and weekly earnings declined to 1.3% y/y from 1.6% in February. At 2 p.m. EST the FOMC minutes will be released.EUR
The European Central Bank head Mario Draghi said in his policy statement that the ECB is ready to adjust all instruments if needed, and that the risks are to the downside. The Central Bank head also said that threats of higher trade tariffs undermine general confidence and dampen global economic confidence.CAD
The Canadian dollar is stable after US data releases.ASIA/PACIFIC
Far East stocks were mixed. The yen traded in a tight range. No specific news today on the US-China trade talks. Asian stocks were directionless.
The Australian dollar strengthened against the US dollar.ILS
In the Israeli election, PM Netanyahu won for a record fifth term. The Blue and White party looks to have won the same number of seats as the Likud party. The shekel strengthened today as the uncertainty of the election has now passed.
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