Commodity currencies rebound on USD weakness

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.

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  • FX Rates
    May 20, 2021

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  • USD

    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.


    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.

    EUR/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.
    USD/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.

    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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