Dollar gives back ground as risk-sentiment improves
After falling yesterday, tech shares bounced back this morning sending the dollar lower as risk-tone improved. Today, the House is set to begin debate on the latest stimulus bill which is expected to be signed into law this weekend. The dollar is lower versus G-10 peers with commodity currencies performing the best.
March 9, 2021
EUR/USD 1.1899 GBP/USD 1.3902 USD/CAD 1.2620 AUD/USD 0.7704 USD/JPY 108.67 USD/CNH 6.5219 USD/ILS 3.3244 USD/MXN 21.2636 USD/CHF 0.9306 USD/INR 72.92 USD/BRL 5.8500 USD/SGD 1.3447 USD/DKK 6.2500 USD/SEK 8.5270 USD/NOK 8.4770
The dollar gave back ground against all G-10 currencies as US equity futures climb and bond yields fall. Treasury yields pulled back this morning as equities are positioned to recoup Monday’s losses. The House prepares to pass a $1.9T relief bill this week and President Biden is expected to sign the legislation prior to expiration of federal unemployment programs on Sunday.GBP
The pound is up slightly versus the dollar firmly above 55-DMA support. The UK currency stumbled against peers after yesterday’s UK goods exports decreased in 2020 furthering concerns about the scale of damage Covid inflicted on the economy.EUR
The euro is stronger versus the dollar on greenback weakness despite eurozone GDP estimates for Q4 2020 showing a contraction of 0.7% - worse than 0.6% predicted.CAD
The Canadian dollar climbed versus a weaker greenback buoyed by risk-on appetite, and a rebound in oil prices. Investors expect the BoC to leave interest rates unchanged tomorrow.ASIA/PACIFIC
USD/JPY touched above 109 and then quickly reversed course amid profit taking and option barriers. The yuan rebounded after Chinese state funds intervened in the equities market to alleviate declines.
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