Dollar reverses 4-day downtrend ahead of FOMC mins
Markets move to risk-off trading amidst fears of the spread of the virus in Asia and concern with the collapse in bitcoin. The US dollar has been supported by this while commodity-linked currencies trade lower in response to weaker commodity prices. Later today, the FOMC will release minutes from the Fed's April 28 meeting. Investors will be focused on any signal by the Fed for next policy moves and its inflation outlook.
“Life isn’t about waiting for the storm to pass, it’s about learning to dance in the rain.”
May 19, 2021
EUR/USD 1.2215 GBP/USD 1.4152 USD/CAD 1.2090 AUD/USD 0.7744 USD/JPY 108.87 USD/CNH 6.4365 USD/ILS 3.2705 USD/MXN 19.8665 USD/CHF 0.9010 USD/INR 73.17 USD/BRL 5.2777 USD/SGD 1.3328 USD/DKK 6.0870 USD/SEK 8.3300 USD/NOK 8.2830
USDThe US dollar snapped a 4-day losing streak as investors await minutes from the Federal Reserve’s April meeting for signals on the central bank’s next move for monetary policy. The Bloomberg Dollar Spot Index is trading just above its YTD low, strengthening 0.3%.GBP
Data out of the UK showed that the inflation rate doubled in April, rising 1.5% versus a 0.7% gain in March. This data could support speculation that the Bank of England may pullback on stimulus measures. GBP/USD is trading lower today on broad USD strength.EUR
Earlier in the session, EUR/USD climbed to its highest level since January. The currency pair hit a high of $1.2245 before reversing gains.CAD
USD/CAD is trading higher today, paring yesterday's losses when the currency pair hit a 5-year low of 1.2013. Weaker commodity prices are helping push the Canadian dollar lower.ASIA/PACIFIC
USD/JPY is trading slightly higher, hovering around the 109 level.
Reports stating the China State Council is looking to control unreasonable commodity prices and manage the yuan have pushed the offshore yuan lower.
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