Recent repricing of inflation expectations and central-bank policy outlook resulted in a shift in risk sentiment boosting the US dollar. The greenback advanced against all G-10 currencies aside from the Japanese yen. The New Zealand dollar was the worst performer amongst G-10 currencies.
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October 21, 2021
EUR/USD 1.1641 GBP/USD 1.3802 USD/CAD 1.2332 AUD/USD 0.7491 USD/JPY 113.94 USD/CNH 6.3981 USD/ILS 3.2104 USD/MXN 20.2826 USD/CHF 0.9176 USD/INR 74.8638 USD/BRL 5.6502 USD/SGD 1.3464 USD/DKK 6.3910 USD/SEK 8.5981 USD/NOK 8.3330
The Bloomberg dollar index rose as much as 0.2% snapping two days of losses. Today, the Fed’s Waller and Williams will speak.GBPSterling is slightly lower versus the dollar. Data out of the UK showed that government borrowing came in materially lower than forecasts, this will be a factor ahead of the government’s budget decision next week.EURThe EUR/USD remains largely unchanged hovering around the 1.1644 level. If the EUR remains on track, it is headed towards its longest winning streak since July 2020.CADEarlier in the trading session USD/CAD broke below the 1.23 handle hitting a low of 1.2288. The currency pair gained on broad USD dollar strength and risk sentiment.ASIA/PACIFICThe Japanese yen is on track for a second session of gains as a sell-off in Japanese equities results in a flight to quality trade. The Australian and New Zealand dollar weakened on broad risk sentiment.
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