US dollar holds steady ahead of Fed meeting later this week
The US dollar is holding in tight ranges against its peers as markets shift focus to the upcoming meeting for the Federal Reserve on Wednesday. Investors will be looking for hints on when the central bank may remove stimulus measures. Data releases this week include US Retail Sales, US Producer Prices and US housing numbers. Markets in Australia, Hong Kong, and China are closed today due to a local holiday.
Economic Data this week:
Tuesday: Italy CPI, France CPI, UK Jobless Claims, US PPI
Wednesday: UK CPI, Fed Rate Decision, US Housing Starts
Thursday: US Initial Jobless Claims, Eurozone CPI
June 14, 2021
EUR/USD 1.2126 GBP/USD 1.4117 USD/CAD 1.2145 AUD/USD 0.7721 USD/JPY 109.77 USD/CNH 6.4115 USD/ILS 3.2449 USD/MXN 19.8777 USD/CHF 0.8982 USD/INR 73.2737 USD/BRL 5.0792 USD/SGD 1.3262 USD/DKK 6.1322 USD/SEK 8.3293 USD/NOK 8.3174
The greenback began the week with some modest gains compared with last week. Traders await the Federal Reserve’s meeting on Wednesday. Investors will be looking for indications of when the central bank may withdrawal stimulus. According to several economists surveyed by Bloomberg, the Fed could announce rate hikes for 2023 as the US economy’s growth and inflation strengthen.GBPSterling traded lower earlier in the session on news that the UK is preparing to announce a delay to the UK’s full economic reopening as cases of Covid-19’s delta variant accelerate. The currency has since reversed losses, trading slightly higher for the day.EUR
EUR/USD is trading slightly higher hitting the top of its recent range. Next level of support is seen as 1.2104 (June 4 low).CADUSD/CAD was trading slightly higher ahead of a report that showed manufacturing decline in Canada. The main focus for the currency pair will be commentary out of the Fed later this week.ASIA/PACIFICUSD/JPY remains largely unchanged trading slightly higher as markets in Hong Kong and China are shut for a local holiday. The currency pair remains within a tight range as traders anticipate commentary from the Fed.
For more analysis on FX markets or information regarding SVB's FX services:
See all of SVB's latest FX information and commentary at www.svb.com/trends-insights/foreign-exchange-advisory
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