US dollar mixed following global central bank decisions
The Bank of Canada decided to lower its asset purchases by a quarter and moved a potential rate hike into next year vs. the previous expectation for 2023. The European Central Bank met earlier today and announced that it will keep its stimulus tools unchanged. The US dollar is trading mixed against its peers and largely unchanged.
April 22, 2021
EUR/USD 1.2006 GBP/USD 1.3834 USD/CAD 1.2533 AUD/USD 0.7712 USD/JPY 108.0600 USD/CNH 6.4885 USD/ILS 3.2595 USD/MXN 19.9086 USD/CHF 0.9186 USD/INR 74.9512 USD/BRL 5.4935 USD/SGD 1.3295 USD/DKK 6.1937 USD/SEK 8.4438 USD/NOK 8.3759
USDThe greenback is trading mixed against its peers following news from European and Canadian central banks. The market will be focused on commentary out of the US central bank next week.GBPAhead of the European Central Bank decision, sterling rose against the USD. The currency pair has since reversed direction trading lower and bouncing off daily low of 1.3859.EURThe European Central Bank announced that it would keep its stimulus tools unchanged in an effort to support a rebound in the economy later this year. The deposit rate was left unchanged at -0.5% as expected by the market. EUR/USD was largely unchanged prior to the announcement trading slightly higher as of this writing.CADThe Canadian dollar surged the most in 10 months following Bank of Canada's announcement that the central bank will lower asset purchases by a quarter and indicated that a rate hike could come as early as next year. CAD strengthened as much as 1.2% yesterday but has since reversed gains with USD/CAD trading slightly higher on broad USD strength.ASIA/PACIFICUSD/JPY trades largely unchanged as the demand for haven assets grow on continued concern for the coronavirus. Earlier in the session, USD/JPY fell as much as 0.2% hitting a low of 107.82.
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