Dollar is steady as markets focus on earnings, Fed
The dollar is steady in a relatively calm market. Investors have paused and refocused their attention from the coronavirus to US corporate earnings and today’s policy update from the Fed. Earnings reports from GE, Boeing and Facebook are released today and the Fed is expected to hold rates steady. Equities are poised to open higher and bond yields slightly lower.
January 29, 2020
EUR/USD 1.0995 GBP/USD 1.2995 USD/CAD 1.3184 AUD/USD 0.6744 USD/JPY 109.177 USD/CNH 6.9650 USD/ILS 3.4546 USD/MXN 18.7510 USD/CHF 0.9763 USD/INR 71.2830
The dollar is fairly steady to slightly higher in relatively quiet markets. At least for the moment, traders' attention seems to have moved from the coronavirus to earnings and the Fed. Equity futures are poised to open higher and US Treasury 10-year yields slipped to 1.63%.GBP
The pound moved lower for the fifth straight day, but holds above $1.30. Traders are focused on tomorrow’s Bank of England rate decision, where speculation grows for a rate cut amid fears that the UK will crash out of the EU at year-end.EUR
The euro dropped near $1.10 and close to 3-month lows, despite an upbeat forecast from the German government on economic growth, which they expect to expand 1.1% in 2020. Eurozone PPI y/o/y at -2.1% was actually better than the expected -2.4%.CADAfter reaching its highest level in over a month, the USD/CAD currency pair has settled into narrow trading below 1.3200. Higher oil prices had little impact. All eyes are on the Fed meeting later today.ASIA/PACIFIC
China is working to control the coronavirus outbreak as the death toll has risen to 132. The CNY is holding near 6.91, even as Chinese equities fell by nearly 3%. Asian EM assets and currencies are under pressure.