Uneven US economic data, stocks higher, dollar lower
This morning’s release of US economic data showed uneven economic growth and led to little reaction in markets. Global stocks were mostly in the green overnight and the S&P opened higher. US 10-yr Treasury yields are steady near 1.49%. The dollar is broadly lower with commodity currencies outperforming. The Bank of England kept its benchmark interest rate steady at 0.10% and maintained asset purchases, which drove the pound lower.
June 24, 2021
EUR/USD 1.1946 GBP/USD 1.3915 USD/CAD 1.2302 AUD/USD 0.7584 USD/JPY 110.77 USD/CNH 6.4679 USD/ILS 3.2422 USD/MXN 20.0368 USD/CHF 0.9179 USD/INR 74.165 USD/BRL 4.9383 USD/SGD 1.3425 USD/DKK 6.2233 USD/SEK 8.4579 USD/NOK 8.5005
The US dollar is broadly lower, the commodity currencies – MXN, BRL, RUB, NZD – the top performers. A slew of economic data was released and showed an uneven recovery. Goods Trade Balance (-$88Bn), Retail Inventories (-0.8%), Durable Goods Orders (+2.3%) for May were all less than expected. GDP Q1 (+6.4%) and Core PCE (+2.5%) were unchanged from the previous period and met expectations. Jobless Claims for the week ending June 19 at 411K were higher than expected.GBP
The UK pound fell after the Bank of England kept policy unchanged, effectively pushing back against speculation that rising inflation should be met with a start to removing its excessive monetary stimulus.EURThe euro edged higher in-line with broad dollar weakness, and following the German IFO Survey for June, which showed an improved business climate.CAD
The Canadian dollar moved little overnight, even as oil prices dropped below $73 per barrel. News of Canada’s rising vaccination rate puts the country on track to reach thresholds to reopen the border with the US as early as next month.ASIA/PACIFIC
The USD/JPY reached a fresh 15-month high above ¥111 on the back of rising expectations of widening US interest rates (rising) vs Japanese rates (steady), a key driver of changes in the value of the yen. In the European time zone, the USD/JPY fell back below ¥111, where it currently trades.
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