Dollar mixed on risk-off tone and upbeat European data
The dollar is mixed versus its major peers today. The GBP and EUR were bid as UK unemployment hit the lowest level in 40 years and eurozone consumer confidence hit the highest level in four years. Modest demand for the dollar was seen following a rise of a disease outbreak in China ahead of expected mass travel for the Chinese Lunar New Year.
Tuesday: World Economic Forum in Davos, Switzerland begins, German ZEW Surveys
Wednesday: Bank of Canada Rate Decision, Canada CPI
Thursday: US Jobless Claims
Friday: Markit France Manufacturing, Markit Eurozone Manufacturing
January 21, 2020
EUR/USD 1.1112 GBP/USD 1.3063 USD/CAD 1.3053 AUD/USD 0.6868 USD/JPY 110.10 USD/CNH 6.9035 USD/ILS 3.4553 USD/MXN 18.7060 USD/CHF 0.9673 USD/INR 71.2100
The dollar is slightly lower versus most G-10 peers and is awaiting fresh direction. A bid for haven currencies due to a deadly virus outbreak in China was offset by upbeat data out of the UK and eurozone. The US data calendar is blank today, and the Fed remains in a blackout period ahead of the January meeting.GBPThe pound advanced 0.5% versus the greenback following a UK labor report showing the unemployment rate at 3.8%, a 40-year low. Markets are pricing in a 60% chance of a rate cut by the Bank of England come January 30.EUR
The euro rose slightly after German ZEW survey showed investor confidence rose to the highest level in four years.CAD
The Canadian dollar slipped versus the dollar amid lower oil prices and a flight to safety as markets reacted to the increased seriousness of a deadly virus in China.ASIA/PACIFIC
The Japanese yen rose versus the dollar amid risk-off sentiment ahead of China’s Lunar New Year holiday. The Bank of Japan left rates unchanged as expected and adjusted their GDP growth forecast up to 0.9% from 0.7%.
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