Risk tone remains cautious this morning and currency markets are mostly quiet amid low volume trading. The euro and pound softened versus the dollar as the Canadian dollar moved just slightly higher. The FDA approved a drug for Alzheimer’s care that can potentially slow progression in early stage patients.
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EUR/USD 1.2184 GBP/USD 1.4130 USD/CAD 1.2087 AUD/USD 0.7742 USD/JPY 109.43 USD/CNH 6.3994 USD/ILS 3.2446 USD/MXN 19.7746 USD/CHF 0.8963 USD/INR 72.8887 USD/BRL 5.0601 USD/SGD 1.3235 USD/DKK 6.1033 USD/SEK 8.2660 USD/NOK 8.2595
USDThe greenback edged slightly higher in low volume alongside treasuries as markets digested comments regarding inflation impact and monetary policy. US Goods and Services exports rose 1.1% MoM and narrowed the trade deficit to $68.9B in April.GBP
Sterling lost 0.3% to the dollar amid rising tensions between the UK/EU and concerns the country will delay the exit from lockdown. The EU and UK are set to have formal talks tomorrow on the handling of post-Brexit obligations surrounding Northern Ireland.EUR
The euro softened slightly versus the dollar as bond yields slip following German ZEW and April Industrial Production. Mixed data showed a 1% contraction in industrial production, but a 26.4% annualized increase. ZEW reading showed economic sentiment contracting unexpectedly. Low volumes persist ahead of an ECB meeting this week.CADThe USD/CAD pair continues to track sideways awaiting fresh direction for a breakout and took marginal movement against the dollar despite the dollar-positive tone. Markets will listen to the BoC announcement tomorrow.ASIA/PACIFIC
Japanese Q1 GDP showed a contraction of 1% quarter over quarter as capital expenditures also shrank. Economic Minister Nishimura expects consumption spending to increase as the economy continues to reopen. The pair edged slightly higher and gains are capped at 109.45 due to macro offers and 109.50 strikes.
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