US dollar is mixed after Treasury Secretary Mnuchin comments at G-7 conference
Kathryn Garvey | July 18, 2019
“Metaphors have a way of holding the most truth in the least space.”Orson Scott Card, American Novelist
July 18, 2019
EUR/USD 1.1216 GBP/USD 1.2471 USD/CAD 1.3077 AUD/USD 0.7030 USD/JPY 107.97 USD/CNH 6.8855 USD/ILS 3.5435 USD/MXN 19.0459 USD/CHF 0.9872 USD/INR 68.9613
USDThe US dollar is a mixed bag this morning. The US dollar is slightly weakened after US Treasury Secretary Steven Mnuchin spoke at the G-7 meeting in France saying there is no change in US currency policy “as of now”. The dollar picked up some momentum after jobless claims were in-line with expectations and the Philly Fed index came in stronger than expected. University of Michigan sentiment is due out tomorrow.GBPThe pound is higher this morning after UK retail sales data outperformed expectations, reversing two straight months of declines. Upside momentum was also bolstered by somewhat positive Brexit news after Michel Barnier, chief negotiator for the EU, commented that he was open to an alternative plan for the Irish border.EUR
The euro is weaker this morning after a Bloomberg report indicated ECB staff have begun to reconsider their official inflation target. The current target is currently just below 2%. Lowering the target inflation rate could allow policymakers to provide additional stimulus for a longer period.CAD
Despite higher oil prices, the Canadian dollar is lower versus the greenback this morning after the US - Canada 2-year yield spread widened to 35bps in favor of the USD – the widest since June 20th.ASIA/PACIFIC
Mnuchin plans to hold a call later today with Chinese counterparts on trade and has indicated he would potentially visit China if initial talks prove productive.
A report released by the International Monetary Fund (IMF) found no indication that China intervened in the foreign exchange market this year, and that the handling of the yuan was “broadly in line” with the state of its economy.
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