A yield increase for short-term Treasury securities to their highest post-pandemic levels has kept the US dollar strong during overnight trading. The dollar spot index BBDXY is 1% higher for the week. The Russian ruble is down 1% over night after the US warns allies the build-up of Russian troops on the Ukraine boarder could be a prelude to invasion.
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November 12, 2021
EUR/USD 1.1436 GBP/USD 1.3383 USD/CAD 1.2586 AUD/USD 0.7300 USD/JPY 113.98 USD/CNH 6.3813 USD/ILS 3.1095 USD/MXN 20.6089 USD/CHF 0.9237 USD/INR 74.4425 USD/BRL 5.4240 USD/SGD 1.3533 USD/DKK 6.5036 USD/SEK 8.7575 USD/NOK 8.7084
The US dollar is off overnight highs relative to a basket of currencies (BBDXY), but remains near 12-month highs. US Treasury yields continue to move higher on expectations the Fed will be forced to begin raising interest rates earlier than previous expectations. The JOLTS Job Openings for September and Univ. of Michigan Consumer Confidence for November are due out later this morning.GBP
Sterling remains under pressure, trading at 11-month lows against the US dollar, despite fresh optimism on Brexit talks. New reports suggest that David Frost, the UK Brexit minister, believes there is still time to find a solution on the Northern Ireland protocol. Frost and his EU counterpart are due to enter further intensive talks over the next few weeks.EUR
EUR/USD has continued its downward trend and tries to remain above a key level of support at 1.1450. The Dutch government is considering the first partial COVID-related lockdown in Western Europe since the summer. New infections have nearly doubled in the last week putting increasing pressure on hospitals. Any decisions are due to be announced at 1800 GMT today. Austria and Denmark are also looking at possible new restrictions.CAD
The Canadian dollar is trading at its weakest levels since early October despite the price of oil remaining near 7-year highs. The strength of the US dollar is effectively passing on oil price increases to oil importers who are required to buy dollars to settle oil purchases which are normally priced in USD.ASIA/PACIFIC
USD/JPY is trading lower and has dropped below the 114.00 mark. The downtick could be attributed to some profit-taking amid slower US dollar demand and following this week's rally of over 150 pips, triggered by US CPI levels.
AUD/USD rates fell to a five-week low holding near the 0.7300 level, down 0.10% for the day. Aussie may be pressured from China’s ongoing energy issues, which will shape GDP going into 2022.
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