US dollar is lower as month-end flows remain market focus
The US dollar is retreating against peers but largely holding on to gains from the quarter, wrapping up its best 3-month stretch in years. The backdrop created by the US government has resulted in expectations for a strong US rebound in growth and inflation. Other global developed economies are to some extent stuck in neutral partially attributable to challenges with vaccine roll-outs. Traders are focused on President Biden’s announcement later today which is expected to unveil a $2.25 trillion stimulus plan.
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March 31, 2021
EUR/USD 1.1732 GBP/USD 1.3775 USD/CAD 1.2581 AUD/USD 0.7614 USD/JPY 110.75 USD/CNH 6.5575 USD/ILS 3.3415 USD/MXN 20.4375 USD/CHF 0.9422 USD/INR 73.1050 USD/BRL 5.7480 USD/SGD 1.3440 USD/DKK 6.3400 USD/SEK 8.7272 USD/NOK 8.5350
The greenback is on pace to finish its best quarter since 2018. A gain of 4% has allowed the currency to regain more than half of its loss from 2020. The push higher for the US dollar has been fueled by signs of strong US growth and higher Treasury yields relative to global peers. President Biden announces a $2.25 trillion stimulus plan later today.GBPSterling is up slightly versus USD as market focuses on month-end rebalancing flows. GBP/USD is up 0.2% overnight with the next level of resistance at the 55-DMA of $1.3822.EUR
EUR/USD trading slightly higher amid quarter-end rebalancing by global investors. There is strong support at the technical level of $1.1700.CADThe loonie has benefited from broad USD dollar weakness, trading stronger ahead of Canada's GDP for January.ASIA/PACIFIC
USD/JPY is trading towards it best month since November 2016 on higher US Treasury yields and expectations of more US stimulus supporting the economy.
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