The increase in monetary policy divergence for the Japanese yen and US dollar has pushed the currency pair to highs not seen in 20 years. USD/JPY briefly traded at the 133 handle. News from Australian announced that the central bank hiked rates the most in 22 years. Oil prices have traded down from highs impacting the Canadian dollar.
June 7, 2022
EUR/USD 1.0677 GBP/USD 1.2525 USD/CAD 1.2575 AUD/USD 0.7186 USD/JPY 132.61 USD/CNH 6.6814 USD/ILS 3.3473 USD/MXN 19.6345 USD/CHF 0.9749 USD/INR 77.7100 USD/BRL 4.9229 USD/SGD 1.3765 USD/DKK 6.9687 USD/SEK 9.8321 USD/NOK 9.5309
The US dollar is stronger across the board and trading notably higher than the Japanese yen hitting a handle of 133. The US trade deficit fell the most on record in dollar terms for the month of April.GBPSterling dropped to two-week low following UK Prime Minister Boris Johnson’s narrow win for the vote of confidence. The currency is trading largely unchanged against the USD after reversing some of its losses.EUREUR/USD is trading lower with the next level of support at 1.0652. The European Central Bank may announce a plan to prevent fragmentation in the eurozone as monetary policy is normalized.CADThe Canadian dollar remains largely unchanged against the US dollar with CAD falling slightly as oil slipped after hitting a top of $120/bbl. USD/CAD is trading near the bottom of the daily range at 1.2570.ASIA/PACIFICThe Japanese yen fell to a two-decade low against the dollar amidst monetary policy divergence between the US and Japan. Policymakers in Japan stated on Tuesday that they see the positive side of the dropping currency which boosts overseas profits. The Australian central bank announced its biggest rate hike in 22 years.
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