Dollar stronger to end week
Last night, President Biden addressed the United States and announced he aims to vaccinate enough Americans so that July 4th activities can resume this year. US treasury yields are driving the dollar higher versus G-10 currencies as equities begin the day in the red. This weekend marks one year since stay at home orders were announced in many US cities.
March 12, 2021
EUR/USD 1.1932 GBP/USD 1.3886 USD/CAD 1.2514 AUD/USD 0.7751 USD/JPY 108.99 USD/CNH 6.5028 USD/ILS 3.3010 USD/MXN 20.7643 USD/CHF 0.9297 USD/INR 72.79 USD/BRL 5.5627 USD/SGD 1.3453 USD/DKK 6.2314 USD/SEK 8.4950 USD/NOK 8.4478
The dollar is stronger this morning. PPI data came in at 2.8% YOY for February – higher than expectations and the largest increase since October 2018. Higher than expected PPI data is mounting evidence for inflation. The gains on the dollar holds the currency above the 100 DMA as the greenback outperforms all peers. Key to the dollar’s strength are returns on US bond yields which are holding above 1.6% after the passage of recent fiscal stimulus.GBP
The pound is down 0.7% versus the dollar but holding above a firm 55-DMA support. The UK economy performed better than anticipated in January, with GDP falling 2.9% MoM vs the 4.9% anticipated, leaving the economy 9% smaller that it was in February.EUR
The euro lost 0.5% versus the dollar in mid-month turnover. Eurozone production came in at 0.8% MOM for January, above expectations of 0.2%.CAD
The Canadian dollar jumped on employment data which showed 259K jobs added in February, above expectations of 98K and dropping the unemployment rate 1.2% to 8.2% - the lowest level since March of last year.ASIA/PACIFIC
Offshore Chinese yuan was sent lower following new US licensing limits on Huawei suppliers. The Japanese yen continues to be the worst performing currency YTD and trades near the 109 level.
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