Dollar stronger to begin week
The dollar is stronger against all G-10 currencies with the exception of the Swedish krona, kiwi and loonie. In focus this morning are weaker equities, a halt in COVID-19 vaccine trials, the beginning of earnings season and continued gridlock in US stimulus efforts. Supreme Court nominee Amy Coney Barrett will be questioned before the Senate Judiciary Committee today.
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October 13, 2020
EUR/USD 1.1759 GBP/USD 1.2969 USD/CAD 1.314 AUD/USD 0.7169 USD/JPY 105.62 USD/CNH 6.7388 USD/ILS 3.3865 USD/MXN 21.3263 USD/CHF 0.9125 USD/INR 73.3463
The dollar rose ahead of inflation data which showed CPI increased 0.2% - the slowest pace in four months. Equities started the week slowly with yesterday’s Columbus Day holiday as earnings season commences. Supreme Court nominee Amy Coney Barrett’s confirmation hearing will continue today.GBP
The pound gave up some territory after a report revealed only minimal progress has been made in Brexit negotiations. The BoE questioned UK banks if they are ready to accommodate negative interest rates around the end of next year. UK unemployment data showed softening conditions and a new three-level COVID alert system continues to impose restrictions on businesses.EUR
The euro was put under pressure amid softer than expected German ZEW figures that showed a drop in Economic Sentiment in October. The EUR/USD pair hovers near 1.1800 awaiting some directional strength.CAD
The loonie was steady against a strong greenback helped by an advance in oil prices.ASIA/PACIFIC
The Japanese yen slipped slightly in light volumes. The Chinese yuan rose after PBOC set the fixing rate in-line with expectations, easing concerns that China is aligning for a weaker yuan.
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