Market participants await this afternoon’s release of the Fed’s recent policy meeting to assess the speed of monetary tightening. Stocks are lower following comments by Chinese Premier Li that the nation’s economic problems are worse than they were in early pandemic 2020. The dollar is broadly stronger, a bounce off yesterday’s lowest levels in a month. US T-bond yields continue to fall, currently trading at 2.73%. Gold is trading lower by $15 at $1855 per oz and WTI oil up $1.25 at $111 per barrel.
May 25, 2022
EUR/USD 1.0664 GBP/USD 1.2516 USD/CAD 1.2849 AUD/USD 0.7057 USD/JPY 127.11 USD/CNH 6.7050 USD/ILS 3.3558 USD/MXN 19.8719 USD/CHF 0.9617 USD/INR 77.52 USD/BRL 4.8390 USD/SGD 1.3762 USD/DKK 6.9755 USD/SEK 9.8805 USD/NOK 9.6200
The dollar is stronger across the board, its first solid move up in two weeks. Trading is light, as markets await the Fed’s minutes from its early May meeting to assess the pace of monetary tightening. Economic data released this morning – both Durable and Capital Goods Orders for April – were lower than expected and March’s data. Traders await tomorrow’s GDP Q1, Personal Consumption and Initial Claims data.GBP
The UK pound fell slightly in line with the dollar’s broad strength. There were no UK economic data releases today nor over the remainder of the week.EUR
The euro declined following comments from ECB members who said that the pace of monetary tightening by the ECB would be gradual, pointing to recent weak economic data. There are no economic releases for the Eurozone this week.CADThe Canadian dollar declined, in line with broad strength in the US dollar and despite higher oil prices. Traders await tomorrow’s Retail Sales data.ASIA/PACIFIC
The Chinese yuan moved lower overnight versus the USD after Chinese Premier Li said the China’s economy is experiencing difficulties worse than in 2020, and following news that Beijing recorded an increase in Covid cases.
The USD/JPY is slightly higher overnight. Yesterday USD/JPY dropped to 126.36, its lowest level since mid-April.
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