The dollar moved broadly higher following President Biden’s re-nomination of Jerome Powell as Fed Chair. Following strong speculation that the Fed will continue to trim asset purchases, Treasury yields picked up and the dollar rose versus G-10 peers. US equities rise in pre-market trading to begin the shortened holiday-week.
Monday: Chicago Fed Index, Existing Home Sales
Tuesday: FR Markit Manufacturing
Wednesday: US Jobless Claims, GE IFO Business Climate, Univ. of Michigan sentiment
Thursday: Thanksgiving, US Markets Closed
November 22, 2021
EUR/USD 1.1241 GBP/USD 1.3396 USD/CAD 1.2678 AUD/USD 0.7242 USD/JPY 114.69 USD/CNH 6.3864 USD/ILS 3.0913 USD/MXN 20.9710 USD/CHF 0.9305 USD/INR 74.4037 USD/BRL 5.5762 USD/SGD 1.3640 USD/DKK 6.6171 USD/SEK 9.0060 USD/NOK 8.9508
The dollar is broadly higher versus peers as supply chain concerns boost Treasury yields and equity futures remain firm amid strong M&A news. Pres. Biden announced the re-nomination of Jerome Powell as Fed Chair which sent the dollar higher this morning. The nomination will continue to the Senate for confirmation.GBP
Sterling is lower versus the greenback following BOE Gov. Bailey’s comments yesterday that tempered expectations of a rate increase next month. He commented that risks to the UK economy were two-sided and included slowing growth and rising inflation.EUR
The euro dropped 1% to fresh sixteen-month lows below 1.13. Europeans demonstrated in the streets against new lockdown restrictions imposed to curb a growing fourth wave of COVID-19. Austria has returned to a nation-wide lockdown and the government has mandated vaccinations by February.CAD
USD/CAD moved higher on strong USD interest and as oil prices sink to seven-week lows.ASIA/PACIFIC
USD/JPY ticked higher amid firm US yields and following Powell's re-nomination. The Australian dollar reversed from session-highs in knee-jerk strengthening of USD following the Powell announcement.
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