Dollar ticks to four-month highs as markets await Fed minutes
February 19, 2020
EUR/USD 1.0787 GBP/USD 1.2952 USD/CAD 1.3228 AUD/USD 0.6677 USD/JPY 110.85 USD/CNH 7.0043 USD/ILS 3.4275 USD/MXN 18.6005 USD/CHF 0.9842 USD/INR 71.5560
The US dollar rose slightly and further strengthened to a four-month high following higher-than-expected inflation figures and upbeat housing data. Investors eagerly await January’s Federal Reserve minutes to be released later today, as they may provide insight into the Fed’s thinking on economic risks and current balance sheet policy.GBP
The pound rose slightly after UK inflation accelerated indicating the BoE may hold off lowering interest rates. The pound pared gains and is now lower for a third straight day.EUR
The euro remains under pressure near 3-year lows, as its been reported that large speculators are unwinding long euro positions, and building shorts.CAD
The Canadian dollar rose versus the dollar on strong inflation data and an uptick in oil prices, triggered by reports of China’s stimulus to combat economic fallout from the virus.ASIA/PACIFIC
China is considering additional measures to protect the economy from the economic impacts of coronavirus. After a rate cut from PBOC this week, attention has turned to the airline industry where numerous travel bans have hit the industry hard. Protections could include direct cash injections and mergers for the struggling carriers.
The Japanese yen traded lower amid optimism regarding global economic stimulus in the wake of the virus, which raised Asian equity markets. The USD/JPY currency pair surged to a 9-month high.