Treasuries and dollar tick higher to end week
The dollar rose slightly on better than expected PPI – yet still ended with the worst week YTD. FOMC Chair Powell commented that the US recovery from the pandemic will be uneven and Treasury yields ticked higher but remained below 1.7%. Prince Philip, husband to the Queen and Duke of Edinburgh passed away this morning at the age of 99. The UK will enter a period of mourning.
April 9, 2021
EUR/USD 1.1883 GBP/USD 1.3738 USD/CAD 1.2545 AUD/USD 0.7627 USD/JPY 109.79 USD/CNH 6.5607 USD/ILS 3.2891 USD/MXN 20.1639 USD/CHF 0.9265 USD/INR 74.7462 USD/BRL 5.6293 USD/SGD 1.3409 USD/DKK 6.2583 USD/SEK 8.5540 USD/NOK 8.5167
The dollar edged higher today along with Treasury yields and equity futures ahead of PPI. PPI increased by 4.2% in March 2021 compared to March 2020 and increased 0.7% compared to the previous month. The YoY comparison is the sharpest since 2011. Despite the slight move higher, the dollar will wrap the week 1% lower after a surprisingly weak jobless claims and ongoing loose Fed speak.GBP
The pound lost ground versus the stronger dollar and touched two-month lows early in the London session. The pound lost ground to the euro as well, which was amplified by a squeeze in euro-pound short positions.EUR
Euro dropped slightly versus the dollar but posted a 1.2% gain this week – the largest of G10 peers. Mixed data out of Germany showing a rise in exports and a fall in industrial output weighed on the common currency.CAD
The Canadian dollar initially edged lower ahead of employment data but rebounded higher when data showed unemployment dropped to 7.5% vs 8% expected.ASIA/PACIFIC
The dollar gained 0.4% on the yen as US Treasury yields advanced and $1.6B of 109.15 expiries hold support ahead of 109.00.
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