Dollar mixed in quiet markets ahead of the weekend
The dollar is mixed versus its peers in quiet markets following several central bank announcements this week. While no rate changes were made, many announcements indicated that additional stimulus may be needed to prop up economies. Covid-19, Brexit and economic growth (or lack thereof) remain key themes in the marketplace.
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September 18, 2020
EUR/USD 1.1842 GBP/USD 1.2960 USD/CAD 1.3187 AUD/USD 0.7292 USD/JPY 104.45 USD/CNH 6.7688 USD/ILS 3.4234 USD/MXN 20.9194 USD/CHF 0.9101 USD/INR 73.455
Light volume leaves the dollar mixed versus major counterparts after rallying in the wake of yesterday’s FOMC meeting. Mixed messages about a vaccine and further US stimulus weigh on the market. Consumer sentiment will be released at 10AM today.GBP
The pound is slightly lower after the BoE left interest rates unchanged and opened the door for negative rates yesterday. The BoE's Monetary Policy Committee commented that they are unsure how the economy may perform further out and that trade tensions between the UK and EU remain unresolved.EUR
The euro is slightly lower on profit taking above $1.1870. Covid-19 cases have begun to flare up again across all parts of Europe even as areas are implementing tighter restrictions to mitigate transmission.CADThe loonie extended losses after Canada's Retail Sales data for July fell 1.2% - worse than expected. Weaker oil prices undermined the currency as the USD/CAD pair eyed a moved above 1.32.ASIA/PACIFIC
The USD/JPY reached a 7-week low this morning, as Japan prepares for holidays on Monday (Respect for the Aged Day) and Tuesday (Autumnal Equinox Day).
The Chinese yuan is set to climb against the dollar for the eighth straight week – the longest run since early 2018, on the dollar’s broad weakness and upbeat economic data out of China.
For more analysis on FX markets or information regarding SVB's FX services:
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