Risk on sentiment returned to the market today, and the dollar and yen both strengthened as investors flee perceived risker currencies. UK GDP reports were released today. Both the YoY and QoQ numbers missed forecast by 0.2% showing that the economy retracted slightly to start 2022. The EUR hit five year lows as concerns around the Ukrainian War continue.
May 12, 2022
EUR/USD 1.0393 GBP/USD 1.2199 USD/CAD 1.3046 AUD/USD 0.6850 USD/JPY 127.81 USD/CNH 6.8092 USD/ILS 3.4596 USD/MXN 20.4118 USD/CHF 1.0001 USD/INR 77.42 USD/BRL 5.1740 USD/SGD 1.3960 USD/DKK 7.1600 USD/SEK 10.1505 USD/NOK 9.8970
Since yesterdays selloff, the market has shifted back toward a risk on mentality, yielding overall dollar strength. There continues to be concern for global economic growth due to China’s COVID zero lockdown policy, and the ongoing tensions in Europe. The dollar has gained against its peers and the DXY is up 0.62% on the day.GBP
The UK GDP reports were released today, and both the YoY and QoQ forecasts were missed. GBP/USD rates have fallen 1.33% since yesterday’s high, and are trading near two year lows for the currency.EUREUR/USD rates fell again today at the beginning of the European session. The euro fell to a five year low with rates in the $1.04 range.CADOil prices fell slightly after yesterday’s uptick, and USD/CAD rates followed suit. Levels are holding near 1.30.ASIA/PACIFIC
Given the new risk on sentiment in the market the Japanese yen has rallied due to investor uncertainty. The yen has appreciated 1.65% intraday, as investors are fleeing to the safe haven currency.
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