The US dollar hits 7-week lows as EUR advances on vaccine news
The USD is broadly lower with the Bloomberg index trading around 0.4% weaker. The EUR broke through the 1.20 level following news that the continent will receive 100 million more doses of the vaccine this year. USD/CAD broke through key level of 1.25 and the markets will focus on the upcoming central bank meeting set for Wednesday.
Wednesday: Bank of Canada Rate Decision, UK CPI
Thursday: US Initial Jobless Claims, ECB Refinancing Rate
Friday: EC Markit Eurozone Manufacturing
April 19, 2021
EUR/USD 1.2027 GBP/USD 1.3955 USD/CAD 1.2493 AUD/USD 0.7769 USD/JPY 108.2400 USD/CNH 6.5118 USD/ILS 3.2628 USD/MXN 19.8228 USD/CHF 0.9150 USD/INR 74.8775 USD/BRL 5.6114 USD/SGD 1.3314 USD/DKK 6.1836 USD/SEK 8.3906 USD/NOK 8.2937
The US dollar fell to a seven-week low as several factors including higher gold, softer Treasury yields and stronger non-dollar havens pushed the greenback lower. The demand for gold followed volatility in Bitcoin as investors fear regulatory impact for the cryptocurrency.GBPSterling is trading stronger as optimism for the UK reopening supports the currency. The next psychological level for GBP/USD is at 1.40 which will be watched closely by traders.EUR
The common currency hit levels not seen since March 4, strengthening as much as 0.4% against the US dollar. EUR/USD pushed above the 1.20 mark, with a high of 1.2048 following news that Pfizer and BioNTech will supply the EU with an additional 100 million vaccine doses this year.CADUSD/CAD broke below 1.2500 on broad USD weakness and ahead of the government’s release of its 2021 budget. The focus will shift to the Bank of Canada’s meeting on Wednesday where the expectation is for an announcement of tapering asset purchases.ASIA/PACIFIC
The Japanese yen advanced against the USD hitting strongest levels in four weeks following tension between the US and China. Tensions seem to be growing between the US and China which has given traders an excuse to buy back the JPY – its unclear how these tensions will play out.
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