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.
April 27, 2021
EUR/USD 1.2075 GBP/USD 1.3892 USD/CAD 1.2416 AUD/USD 0.7772 USD/JPY 108.34 USD/CNH 6.4832 USD/ILS 3.2423 USD/MXN 20.0025 USD/CHF 0.9147 USD/INR 74.6625 USD/BRL 5.4538 USD/SGD 1.3261 USD/DKK 6.1589 USD/SEK 8.3996 USD/NOK 8.2953
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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