Commodity currencies rebound on USD weakness
The Bloomberg Dollar Index strengthened yesterday following the release of the Fed’s minutes from the April meeting. The commentary suggested that there are Fed members that are open to discussing bond tapering. The dollar reversed those gains overnight, and is trading lower against most of its G-10 peers. Investors will focus on commentary from the Bank of England’s Deputy Governor and Bank of Canada Governor today.
May 20, 2021
EUR/USD 1.2211 GBP/USD 1.4149 USD/CAD 1.2093 AUD/USD 0.7767 USD/JPY 108.90 USD/CNH 6.4344 USD/ILS 3.2615 USD/MXN 19.9053 USD/CHF 0.8997 USD/INR 73.1050 USD/BRL 5.2909 USD/SGD 1.3315 USD/DKK 6.0891 USD/SEK 8.3295 USD/NOK 8.3270
The Fed Reserve released minutes from its April meeting yesterday that suggested some members of the central bank are willing to discuss tapering of bond purchases. The Bloomberg Dollar Index traded higher on the release, but has since erased gains down only 0.1% overnight.GBP
Sterling is trading higher against a broadly weaker US dollar. Investors will focus on comments from the Bank of England’s Deputy Governor Jon Cunliffe later today.EUREUR/USD broke above 1.22, as the greenback trades lower across the board. The currency pair retreated from 4-month highs, still maintaining a modest gain.CADUSD/CAD retreated on stronger commodity prices, but has held above the 1.21 level. Traders will focus on comments due from the Bank of Canada Governor Tiff Macklem following the central bank's release of its Financial System Review later today.ASIA/PACIFIC
The Australian dollar held on to gains despite a miss in the country's April employment report. The AUD/USD currency pair is up 0.2%.
The Japanese yen has been the worst performing currency this year and is down more than 5% against the USD.
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