The dollar extends yesterday's gains, breaking key resistance versus the euro. A rise in energy prices and supply chain bottlenecks continue to worry markets amid fears that current inflation may not be transitory. The ECB is hosting its annual central bank forum starting today. Comments by ECB President Lagarde, Fed chair Powell, BoJ Governor Kuroda and BoE Governor Bailey, will be followed closely by financial markets. US stocks are opening higher and UST 10Yr yields are stable near 1.5%.
"Some painters transform the sun into a yellow spot, others transform a yellow spot into the sun.”
September 29, 2021
EUR/USD 1.1640 GBP/USD 1.3450 USD/CAD 1.2708 AUD/USD 0.7202 USD/JPY 111.57 USD/CNH 6.4695 USD/ILS 3.2158 USD/MXN 20.4680 USD/CHF 0.9307 USD/INR 74.1500 USD/BRL 5.4350 USD/SGD 1.3585 USD/DKK 6.3890 USD/SEK 8.7570 USD/NOK 8.7400
The dollar is higher versus G10s with the exception of the yen and Swiss franc. The USD achieved 10-month highs amid month-end rebalancing by global investors and higher treasury yields. Traders will look to today’s central bank forum for clues on monetary policies. On the domestic side, the US Senate is working to come to consensus on a temporary spending bill to avoid a government shutdown.GBP
The pound lost 0.4% to the dollar and is at its lowest level since January as inflation fears mount across the UK.EUR
The euro shed another 0.3%, breaking below key support at $1.1663. ECB Governing Council member Makhlouf commented yesterday that the ECB needs to be cautious right now and not raise rates in response to transitory inflation.CAD
The greenback gained against the Canadian dollar amid risk-off trading, strong dollar buying interest and oil prices backing off from 3-month highs.ASIA/PACIFIC
The yen slipped slightly again, reaching an 18-month low versus the dollar.
Amid Evergrande fallout, China's central bank injected liquidity for the ninth day into the banking system.
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