Markets traded cautiously ahead of the European Central Bank decision and meeting earlier today. The central bank committed to a 25 bps rate hike for July and suggested that there could be an additional more hawkish hike of 50 bps in September. The Japanese yen strengthened for the first time in 5 days due to broad market risk sentiment.
June 9, 2022
EUR/USD 1.0697 GBP/USD 1.2545 USD/CAD 1.2582 AUD/USD 0.7149 USD/JPY 133.71 USD/CNH 6.6932 USD/ILS 3.3458 USD/MXN 19.5916 USD/CHF 0.9737 USD/INR 77.7625 USD/BRL 4.9107 USD/SGD 1.3769 USD/DKK 6.9540 USD/SEK 9.8137 USD/NOK 9.5065
USDUS dollar trades mixed strengthening versus EUR, GBP and CAD while weakening against the Japanese yen. Markets were focused on the outcome of the ECB meeting which committed to a 25bps for July.GBPSterling traded weaker ahead of the ECB meeting as investors speculate that the Bank of England will commit to an interest-rate hike by September at its meeting next week. GBPUSD has since pared losses trading only slightly lower for the trading session.EUREUR weakened ahead of ECB rate decision. At the ECB meeting, the central bank raised its inflation forecast for 2022 and committed to a dovish 25-bps rate hike in July. Additionally, the ECB hinted at a more hawkish pivot with a potential 50 bps hike in September.CAD
Ahead of the ECB meeting, USDCAD was trading down slightly. The currency pair has since reversed gains while oil trades sideways.ASIA/PACIFIC
The Japanese yen strengthened for the first time in 5 days ahead of risk events including US inflation data release for Friday.
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