Dollar mixed amidst month end and quarter end flows; largely unchanged after US data release
The dollar strengthened relative to the British pound, Japanese yen and Indian rupee but lost ground relative to most other currencies. Mixed trading due to quarter-end rebalancing and a general risk-on sentiment may lead to a volatile last two trading days of the quarter.
September 27, 2019
EUR/USD 1.0932 GBP/USD 1.2317 USD/CAD 1.3255 AUD/USD 0.6762 USD/JPY 108.09 USD/CNH 7.1175 USD/ILS 3.4834 USD/MXN 19.6612 USD/CHF 0.9931 USD/INR 70.5663
The greenback is mixed amidst month and quarter-end flows and little changed following release of US durable goods and personal spending data this morning. Fed Reserve Bank of Philadelphia President Patrick Harker stated that the US economy is in good shape but could face uncertainty with weaker global growth and trade tensions.GBP
Sterling fell to levels below 1.23, its worst level in 3 weeks, following comments from Michael Saunders, a member of the Monetary Policy Committee at the Bank of England. His commentary sparked fears that a rate cut could happen even if a no-deal Brexit is avoided. The pound has since reversed losses trading to a session high of 1.2337.EUR
The euro moved off lows for the month amid broad dollar weakness. Month-end and quarter-end short-covering was seen as FX traders lightened bearish euro positions.CAD
The Canadian dollar strengthened versus the US dollar despite a drop in oil prices. News of a possible Saudi-Yemen cease fire eased tensions in the Middle East and drove oil prices down nearly 3% to $55.80 per barrel (WTI).ASIA/PACIFIC
The USD/JPY moved back above 108 as a modest risk-on sentiment took hold in the marketplace.
Asian currencies rose overnight as traders, who have been running long USD positions and short Asian currencies, covered positions amid month-end and quarter-end adjustments.