The dollar was lower versus peers ahead of ADP employment data this morning and then ticked higher following data showing 742K jobs were added in April – the strongest reading since September 2020. Markets look towards tomorrow’s Bank of England meeting and Friday’s employment data out of the US and Canada.
May 5, 2021
EUR/USD 1.2005 GBP/USD 1.3902 USD/CAD 1.2268 AUD/USD 0.7739 USD/JPY 109.23 USD/CNH 6.4855 USD/ILS 3.2673 USD/MXN 20.1943 USD/CHF 0.9131 USD/INR 73.91 USD/BRL 5.3903 USD/SGD 1.3355 USD/DKK 6.1946 USD/SEK 8.4930 USD/NOK 8.3416
The dollar is mixed versus peers this morning as commodity currencies outperform and soft data out of the eurozone send the euro lower. Yellen walked back comments yesterday where she indicated interest rates would need to rise at some point. ADP employment change came in at +742K, below expectations but continuing an upward acceleration. Investors will continue to watch for Friday’s employment numbers as an indicator of the health of the US economy.GBP
The pound ticked higher versus the greenback ahead of tomorrow’s Bank of England Monetary policy statement tomorrow. The BoE is expected to leave the rate untouched and investors will listen for how and when the bank will reduce QE measures ramped up in 2020.EUR
The euro dipped versus the dollar and found support just below 1.20 as soft market services PMI for April weighed on the currency.CAD
The Canadian dollar strengthened along with other commodity currencies helped by a rally in oil prices and other input commodities.ASIA/PACIFIC
The Japanese yen gained a little strength after trading in a tight range. Tokyo returns from holiday on Thursday which may increase volatility.
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