Dollar is modestly lower versus many G-10 peers before a packed US data calendar Wednesday and Thursday. Equity markets bounced back this morning on optimism on talks between President Biden and Senator Joe Manchin which indicate that the door is not fully closed on Biden’s $2T agenda. Commodity prices are rising as health officials indicate vaccinations can tame Omicron infections.
“The great thing in this world is not so much where you stand, as in what direction you are moving.” Oliver Wendell Holmes
December 21, 2021
EUR/USD 1.1276 GBP/USD 1.3255 USD/CAD 1.2924 AUD/USD 0.7133 USD/JPY 113.87 USD/CNH 6.3810 USD/ILS 3.1615 USD/MXN 20.7600 USD/CHF 0.9233 USD/INR 75.6065 USD/BRL 5.7500 USD/SGD 1.3648 USD/DKK 6.5952 USD/SEK 9.1530 USD/NOK 8.9755
President Biden will address the nation this afternoon and is expected to re-iterate the importance of being vaccinated, as cases tied to the Omicron variant continue to rise in the US.GBP
The pound hopped 40 points higher versus the dollar on higher gilt yields and following the UK’s support to businesses impacted by Covid.EUR
The euro tracked slightly higher versus the dollar following higher Euro bond yields. The ECB is taking a patient approach to policy tightening and holding rates steady till 2023.CAD
The Canadian dollar climbed alongside higher oil prices to strengthen versus the dollar.ASIA/PACIFIC
USDJPY rose slightly but still sits below the 114 handle and last week’s highs following the recent hawkish FOMC announcement.
Kiwi and Aussie both outperformed versus the dollar amid improved risk sentiment.
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