Dollar mixed as FX speculators await tomorrow’s FOMC statement and press conference

Dollar mixed as FX speculators await tomorrow’s FOMC statement and press conference

Investors await confirmation that the FOMC will not make material changes as the Federal Reserve starts their two-day meeting today. Commodity currencies are leading again today as more investors become certain the post-Covid economy will include high demand for basic commodities. Both the eurozone and the UK increased their outlook for stronger GDP growth this year, but their currencies barely moved.

"The future belongs to those who prepare for it today."
Malcolm X
  • FX Rates
    April 27, 2021

    Rates are not real time. Rates are today's indicative mid-market rates as of time of publishing, which may vary. Please contact SVB for a current quote.


  • USD

    No significant trends in FX markets prevailed in early morning trading as the dollar put in a mixed performance. Commodity currencies prevailed as the Canadian, Australian and New Zealand dollar gained. Even safe haven currencies are mixed with the Japanese yen slightly weaker, but the Swiss franc strengthening.

    Conference Board Consumer Confidence for April is due out later this morning.

    GBP

    The pound is stronger this morning as economists have raised growth forecasts for the year to 5.4%, against previous expectations of 4.2%. Analysts credit the fast vaccine rollout and extension of the furlough scheme as the main contributors. Some have said that this figure is still conservative and could be closer to 7%. Any expansion above 6.5% would be the strongest since the Second World War.

    EUR

    The euro is flat despite the German government raising their growth forecast for the year to 3.5% from a previous figure of 3%.

    CAD

    The Canadian dollar strengthened again as investors look beyond Covid to robust demand for commodities including oil.

    ASIA/PACIFIC

    The Bank of Japan kept policy unchanged during today’s central bank meeting, whilst raising their GDP forecasts to 4% over the next 12 months. It also cut  inflation forecasts for the current fiscal year to 0.1%.

    The Indian rupee closed flat just below 75 as the country continues to have record levels of new Covid cases and fatalities.

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Peter Compton
WRITTEN BY
Peter Compton

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