The dollar continues to lead G-10 to kick off Fed week. The United States, Bank of England, and Royal Bank of Australia are scheduled to announce rate decisions this week. Traders have priced in a 0.25% rate hike for the US, and will listen for signs of the pace of tightening.
Economic Data this week:
Monday: ISM Manufacturing, CA S&P Manufacturing PMI
Tuesday: RBA rate decision
Wednesday: Fed rate decision
Thursday: BOE rate decision
May 2, 2022
EUR/USD 1.0508 GBP/USD 1.2539 USD/CAD 1.2906 AUD/USD 0.7046 USD/JPY 130.10 USD/CNH 6.6831 USD/ILS 3.3566 USD/MXN 20.4035 USD/CHF 0.9762 USD/INR 76.5150 USD/BRL 5.0323 USD/SGD 1.3872 USD/DKK 7.0790 USD/SEK 9.8983 USD/NOK 9.4713
Dollar remains firm amid investor caution in response to high inflation and tightening monetary policy. Traders are focused on Fed decisions and key earnings out this week.GBP
GBP also under pressure versus the strong dollar and ahead of Thursday’s Bank of England decision. GBP slid 0.26% - the most in four days.EUREuro continues its slide falling 0.2% to open the week. Nearby support is YTD low of 1.0472.CADUSD/CAD climbs to YTD high, as the loonie slid for a second day against the strong dollar. Oil prices slid too, weighing on the currency.ASIA/PACIFIC
USD/JPY rose as Japan celebrates Golden Week holidays this week.
Manufacturing and services activity in China dropped to the worst levels since February 2020 as the country remains under COlockdown. The offshore yuan weakened following news.
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