Dollar held onto yesterday’s gains versus most majors currencies
Kathryn Garvey | July 17, 2019
July 17, 2019
EUR/USD 1.1220 GBP/USD 1.2423 USD/CAD 1.3070 AUD/USD 0.6999 USD/JPY 108.23 USD/CNH 6.8836 USD/ILS 3.5435 USD/MXN 19.0527 USD/CHF 0.9889 USD/INR 68.8187
USDAfter firming yesterday, the dollar remains mostly unchanged following this morning’s US housing data, which was slightly lower than the forecast. Fed Chair Powell’s dovish comments yesterday highlighted the importance he is paying to global developments, “US economic developments affect the rest of the world, and the reverse is also true…”. Tomorrow, we get US jobless claims and the Philadelphia Fed Business Outlook.GBPThe pound hovers near two-year lows after the market priced in a higher probability of a no-deal Brexit along with stagnating UK economic data. Some market technicians are calling for a long dive to parity ($1.00 is 19% from today’s $1.2410) with the dollar if there is a no-deal Brexit come October.EURThe euro remains within a tight trading range, rising ever so slightly in advance of this week’s G-7 meetings in Italy. Gains are capped by the stronger dollar and a spillover of Brexit uncertainty, affecting both sides of the English Channel.CADThe loonie was slightly firmer ahead of Canada’s inflation and manufacturing sales data, but then slipped after soft numbers.ASIA/PACIFIC
China’s central bank increased market liquidity by injecting 260 billion yuan into the economy after corporates made their income tax payments. Onshore and offshore renminbi hold steady against the dollar.
The aussie is lower versus the dollar. Upbeat jobs data due out Thursday could provide fresh direction.