Dollar steady ahead of FOMC minutes
The dollar is holding steady in a wait-and-see status ahead of the release of FOMC minutes this afternoon. Both the euro and pound curbed bullish runs as corporates and institutions took profits. The US government has shown signs of willingness to compromise on another round of stimulus. The S&P 500 closed at an all-time high yesterday in cautious risk-on trading.
August 19, 2020
EUR/USD 1.1946 GBP/USD 1.3222 USD/CAD 1.3136 AUD/USD 0.7266 USD/JPY 105.38 USD/CNH 6.9033 USD/ILS 3.4003 USD/MXN 22.0693 USD/CHF 0.9068 USD/INR 74.82
USDThe dollar is holding steady on pound and euro profit taking after yesterday’s fall to the lowest level since May 2018. Investors will look for clues on inflation targeting in today’s Fed minutes, released at 2:00 pm. In Congress, both sides of the aisle have signaled willingness to compromise on a further stimulus deal.GBPThe pound retreated on profit taking after rising to the highest level since January 1. Brexit negotiations restart this week as the UK and EU attempt to reach agreement.EURThe euro is unchanged as corporates and institutions sold off euro to take profits after the currency rose to an over two-year high. Hedge funds buying the dip curbed downside. Germany has rolled back phased openings in an attempt to control increasing virus numbers.CAD
Inflation data for Canada came in lower than expected and the Canadian currency continued to strengthen versus the dollar.ASIA/PACIFIC
The yen traded sideways to slightly stronger versus the dollar for a forth session. Japanese exports sunk 19.2% year over year for July – slightly better than the forecasted 21% drop.
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