Dollar edges higher in risk-off markets; Infrastructure speech today
The dollar moved higher versus the pound, Canadian dollar, and Asian currencies as yesterday’s risk-on tone eased and as traders await minutes from the recent Fed meeting. Financial markets will listen to President Biden today as he gives a speech on the $2.25T infrastructure plan and tries to earn bipartisan support.
April 7, 2021
EUR/USD 1.1885 GBP/USD 1.3744 USD/CAD 1.2609 AUD/USD 0.7626 USD/JPY 109.79 USD/CNH 6.5464 USD/ILS 3.2941 USD/MXN 20.1573 USD/CHF 0.9281 USD/INR 74.5563 USD/BRL 5.5793 USD/SGD 1.3391 USD/DKK 6.2509 USD/SEK 8.6016 USD/NOK 8.4527
The dollar is slightly higher versus some peers as traders await minutes from the latest Fed meeting. February trade balance revealed that the US trade deficit widened to a record high driven by household and business demand for imports.GBP
The pound extended yesterday’s drop by as much as 0.4% largely due to profit taking by investors and the potential impact of the AstraZeneca vaccine review by the European Union.EUR
The euro rose higher for a fourth day approaching the 200 DMA as EUR 3.2B of carry positions are set to unwind tomorrow. ECB Governing Council Member Knot said the emergency Quantitative Easing program is on target to begin a phase out in September, thanks to a stronger economic growth outlook.CAD
The Canadian dollar lost ground versus its US counterpart on dollar strength and as Ontario is set to impose another round of restrictions to combat a rise in Covid cases.ASIA/PACIFIC
The Australian dollar fell versus the US currency on overall dollar strength. The A-dollar has support at 0.7563 – the March 25 low.
The yen advanced slightly versus the dollar but gains are largely capped as $2.2B of options are set to expire.
The Indian rupee lost ground as the central bank there announced new quantitative easing measures and Covid cases spiked higher.
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