“It makes a big difference in your life when you stay positive”
May 18, 2022
EUR/USD 1.0523 GBP/USD 1.2410 USD/CAD 1.2831 AUD/USD 0.7005 USD/JPY 128.71 USD/CNH 6.7473 USD/ILS 3.3553 USD/MXN 19.9007 USD/CHF 0.9969 USD/INR 77.5838 USD/BRL 4.9579 USD/SGD 1.3871 USD/DKK 7.0706 USD/SEK 9.9696 USD/NOK 9.7526
The dollar is higher as the Fed warns of an aggressive hiking path, saying that the central bank could raise rates above the neutral rate. This could come at a cost to the economy, vowing to push until inflation falls. The dollar has climbed off the back of an increasingly hawkish fed, trading 0.2% higher. This was echoed by the Chicago Fed chief, stating that front-loading hikes was necessary.GBPThe pound gave back some of yesterday’s gains as UK inflation rose to the highest in 40 years at 9%, and now is the highest among G7 countries. Stagflation – high inflation and slow growth – adds downside to sterling.EUR
The euro weakened in overnight trading as new-vehicle sales shrank for a 10th consecutive month on supply-chain constraints. Yields on European bonds increased as investors expect the European Central Bank will raise rates.CAD
The Canadian dollar is flat despite oil hanging-on to most of yesterday's price gains. Oil traded over $115/bbl yesterday and remains extremely volatile. April Core CPI readings for Canada came in higher than expected with the headline hitting 6.8% vs. the 6.7% expected.ASIA/PACIFIC
The Australian dollar gained despite weak wage growth (+2.4%) reported for April. FX traders now believe the Reserve Bank of Australia will raise rates in 25bps rather than 50bps increments. The race for Australia’s premiership heats up this week, ahead of Saturday’s election. The country's stance on China is top of the agenda.
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