Dollar lower, IMF panel in focus
The dollar eased again versus major peers today as FOMC minutes reiterated the Fed’s dovish stance and fueled equity investor optimism. Minutes gave a brighter outlook to the economy, but also agreed to support near-zero interest rates in the short and midterm. Today, Jay Powell is set to contribute to a panel on the global economy at the IMF meeting. Markets will listen closely at the 12pm panel for thoughts on global recovery and monetary policy outlook.
April 8, 2021
EUR/USD 1.1893 GBP/USD 1.3746 USD/CAD 1.2606 AUD/USD 0.7639 USD/JPY 109.05 USD/CNH 6.5598 USD/ILS 3.2848 USD/MXN 20.1222 USD/CHF 0.9254 USD/INR 74.6075 USD/BRL 5.5907 USD/SGD 1.3403 USD/DKK 6.2534 USD/SEK 8.5696 USD/NOK 8.4907
The dollar eased again today as treasury yields slide and US initial jobless claims showed an increase to 744K – higher than expected. Fed minutes yesterday reiterated dovish stance agreeing accommodative monetary policy will remain in place until further progress regarding employment and inflation is reached. Jay Powell is due on an IMF panel discussion mid-day.GBP
The pound steadied versus the dollar after Q1 profit taking by market participants sent the pound lower yesterday. The pound’s strength year-to-date has been credited to expectations of an economic rebound and a rapid vaccine rollout program. Investors await economic data and evidence of a sustained vaccine rollout to see if pound can hold onto Q1 gains.EURThe euro rose again versus the dollar but gains were capped by EUR2.9B in option expiry. Nearby resistance is the 200DMA of 1.1894.CAD
The Canadian dollar edged higher versus the greenback along with stock futures after US jobless claims disappointed. Canada’s employment data for March is due out tomorrow.ASIA/PACIFIC
The Japanese yen also firmed versus the dollar as yen shorts cover positions and FX speculators “buying-on-the-dip” effectively slowed the decline.
The Chinese yuan lost ground versus the dollar as the PBOC vowed to increase currency flexibility.
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