Dollar is broadly lower ahead of a busy data day today and tomorrow and following the President’s remarks on the US response to Covid yesterday. Nine of the 10 G-10 currencies strengthened as investors speculate on the economic impact of rising Covid cases. The FDA is set to authorize COVID treatment pills from Pfizer and Merk which when given, could reduce the burden on already strained hospitals.
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December 22, 2021
EUR/USD 1.1308 GBP/USD 1.3326 USD/CAD 1.2890 AUD/USD 0.7187 USD/JPY 114.22 USD/CNH 6.3780 USD/ILS 3.1670 USD/MXN 20.7890 USD/CHF 0.9221 USD/INR 75.5500 USD/BRL 5.7250 USD/SGD 1.3642 USD/DKK 6.5750 USD/SEK 9.1025 USD/NOK 8.8740
In President Biden’s comments yesterday on how the administration will address the Omicron variant, he remarked they will distribute 500M free tests as well as provided additional support in the form of military deployments to hospitals needing extra staff. US data releases today include mortgage applications, Chicago Fed, annualized GDP, personal consumption and consumer confidence.GBP
The pound edges higher versus the dollar for the second day in thin trading volumes. UK’s decision to not impose tight restrictions along with dip buying support the currency. GDP data out today shows the economy grew at 1.1% in Q3 versus 1.3% expected.EUR
Euro moved higher after ending yesterday mostly unchanged on broad USD drop. The pair holds above $1.1300.CAD
CAD advances versus the dollar as the pair dips below 1.29 handle. PM Trudeau is scheduled to give a press conference on Canada’s response to the Covid situation.ASIA/PACIFIC
Haven currencies came under selling pressure, and the dollar has ticked up very slightly against the JPY. Yield differential between the US and Japan will continue to support the dollar. October BoJ minutes released overnight indicate BoJ intends to keep rates steady for some time and begin to trim asset purchases in April.
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