Dollar lower ahead of tomorrow’s CPI reading
Yesterday’s selloff in equities has extended globally driven by tech sector losses on inflationary fears. The dollar extends its slide lower versus G-10 peers as the euro and pound tick up notably versus the US currency.
May 11, 2021
EUR/USD 1.2165 GBP/USD 1.4142 USD/CAD 1.2081 AUD/USD 0.7849 USD/JPY 108.56 USD/CNH 6.4297 USD/ILS 3.2889 USD/MXN 19.8434 USD/CHF 0.9019 USD/INR 73.34 USD/BRL 5.2535 USD/SGD 1.3258 USD/DKK 6.1124 USD/SEK 8.3068 USD/NOK 8.2638
The dollar is lower along with equities amid inflation fears. Markets will keep an eye on CPI numbers out tomorrow for signs of inflation. The US pipeline that is currently disrupted due to a cyberattack is expected to return to capacity by this weekend.GBP
Cable climbed again on re-opening optimism and ahead of the Queen’s speech today which will outline government policy program for next year. For the first time since the beginning of the pandemic, England reported no daily deaths from Covid-19.EUR
The euro ticked higher following German inflation and ZEW survey data which came in better than expected. ZEW economic sentiment jumped to 84.4 – the highest level in two decades as markets are optimistic about an economic upswing in the coming months.CADThe Canadian dollar trades flat versus the greenback as oil retreated on optimism that US pipeline service will be restored by the end of the week.ASIA/PACIFIC
The yen strengthened on safe haven demand and is 0.2% stronger versus the dollar.
The offshore yuan strengthened on PBOC comments and an increase in factory prices in China.
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