The US dollar was the winner yesterday following Jerome Powell’s re-nomination to Fed chair for the next four years. The re-nomination solidifies expectations that the central bank will maintain its current course on tapering and economic support while facing inflation and economic impacts of the pandemic. Stocks closed mostly lower following the announcement of Powell to continue to lead the Fed as investors see interest rate hikes on the horizon.
November 23, 2021
EUR/USD 1.1251 GBP/USD 1.3371 USD/CAD 1.2702 AUD/USD 0.7228 USD/JPY 115.04 USD/CNH 6.3919 USD/ILS 3.1279 USD/MXN 21.1502 USD/CHF 0.9328 USD/INR 74.4212 USD/BRL 5.6388 USD/SGD 1.3664 USD/DKK 6.6081 USD/SEK 9.0110 USD/NOK 8.9174
The dollar holds strong near 16-months highs following President Biden re-nominating Powell as Fed chair for a second term. Expectations of an eventual rate hike pushed 10-year yields higher above 1.65. Biden will, according to the White House, “Deliver remarks on the economy and lowering prices for the American people” today ahead of the Thanksgiving holiday. November PMI for the US is due out this morning.GBP
Investors are beginning to ditch the pound as the BOE has a change in tone. Although markets expected a hike in December, following November's rate hold, recent comments from BOE Bailey and Pill have made investors more apprehensive about the coming meeting, saying the decision would be finely balanced.EURThe euro is solidly below 1.13 as the dollar continues to advance at US open. Despite recovering modestly earlier in the European session, supported by upbeat PMI prints for November, renewed COVID-19 concerns worried investors and provide a headwind for the euro.CADThe Canadian dollar continued to slip as oil prices fall below $75 again weighed down by an interruption in demand caused by further eurozone lockdowns.ASIA/PACIFIC
USD/JPY rose again, holding near four-year highs. 115.00 remains the next psychological level.
The Australian dollar fell further to seven-week lows driven by strength of the USD. The currency has lost 4% in the last three weeks as interest rate divergence between the Fed and RBA remains a key theme.
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