US dollar sinks to 4-month low
The Bloomberg dollar index is trading near 4-month lows as 'risk-on' sentiment is pushing the US dollar lower. The greenback is trading lower against all of its G-10 peers. Commentary out of the Federal Reserve was seen as dovish and supports risk sentiment in the markets. Positive news out of the eurozone regarding the vaccine rollout has created optimism for investors as the busy tourist season of summer is just around the corner.
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May 18, 2021
EUR/USD 1.2217 GBP/USD 1.4207 USD/CAD 1.2040 AUD/USD 0.7798 USD/JPY 108.90 USD/CNH 6.4225 USD/ILS 3.2654 USD/MXN 19.8500 USD/CHF 0.8965 USD/INR 73.0450 USD/BRL 5.2603 USD/SGD 1.3295 USD/DKK 6.0865 USD/SEK 8.2838 USD/NOK 8.1950
USDMarket risk-on sentiment strengthened causing the US dollar to trade lower. The risk sentiment was sustained by comments from the Federal Reserve, down-playing the risk for tighter monetary policy.GBP
Sterling is trading higher and broke above the 1.42 handle. The pound rose amidst broad USD weakness and ahead of commentary from the Bank of England later Tuesday and Wednesday’s inflation data.EUR
The euro is trading higher, breaking above the 1.22 handle. The common currency is on track to target levels last seen in February as investors are optimistic with vaccine rollouts which could support tourist activity this summer.CADUSD/CAD dropped as much as 0.5%, hitting a low not seen since May 18, 2015. Despite lagging behind its G-10 peers, the loonie advanced against the greenback as the US dollar approached a 4-month low. WTI crude oil is up slightly, trading about 0.2% higher.ASIA/PACIFIC
Commodity-linked currencies, including the Australian dollar and New Zealand dollars, are trading higher as a more dovish Fed could allow commodity prices to continue to strengthen. NZD/USD is up 0.4% while AUD/USD is up 0.3%.
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