The US dollar begins the week much higher – the highest levels since April 2020 – as soaring inflation fueled expectations the Fed will deliver bigger rate hikes over the balance of the year.
Economic Data this Week:
Tuesday: UK Jobless Claims
Wednesday: FOMC Rate Decision
Thursday: BoE Rate decision, US Jobless Claims
Friday: EU CPI YoY (final)
June 13, 2022
EUR/USD 1.0442 GBP/USD 1.2180 USD/CAD 1.2852 AUD/USD 0.6963 USD/JPY 133.9 USD/CNH 6.7502 USD/ILS 3.4458 USD/MXN 20.3898 USD/CHF 0.9945 USD/INR 78.0375 USD/BRL 5.1023 USD/SGD 1.3904 USD/DKK 7.1254 USD/SEK 10.1666 USD/NOK 9.8757
Dollar is trading higher against all G-10 currencies with the exception of the Japanese yen as markets begin the week in a risk off mood following Friday’s faster than forecast inflation print. High inflation numbers weigh on risk sentiment and traders are pricing in 255 additional bps of tightening through the end of the year.GBP
Sterling fell 1.2% versus the dollar driven by Brexit worries and as traders position in advance of the Bank of England meeting this week. YTD low is 1.2156 sitting ahead of the psychologically important level of 1.20.EUR
The euro slid 0.7% trending lower for the third straight day and continuing with a long term downward trend. The currency was pushed down following the ECB’s rate decision.CAD
Despite strong employment numbers Friday, the Canadian dollar continues to slide in favor of the stronger dollar. The currency pair has fallen near 50bps on the day.ASIA/PACIFIC
JPY bounced slightly after hitting 24-year lows following BoJ Governor Kuroda’s comments that the recent rapid weakening of the yen is bad for the economy.
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