News from the PBOC stated that the central bank will implement monetary policy measures to support small businesses impacted by the pandemic. Asian currencies traded firmer on the news and the greenback remains strong against G10 currencies. Both EUR and GBP hit lows not seen since 2020.
April 26, 2022
EUR/USD 1.0682 GBP/USD 1.2684 USD/CAD 1.2791 AUD/USD 0.7187 USD/JPY 127.20 USD/CNH 6.5793 USD/ILS 3.2927 USD/MXN 20.3232 USD/CHF 0.9569 USD/INR 76.5788 USD/BRL 4.9577 USD/SGD 1.3746 USD/DKK 6.9660 USD/SEK 9.7456 USD/NOK 9.1810
The US dollar rose for a fourth day as Treasury yields dropped 2-3 basis points across the curve. The greenback retreated from highs following the commitment from PBOC to “step up the prudent monetary policy’s support to the real economy.”GBP
Sterling hit 21-month low of 1.2673. The GBP/USD currency pair declines for a fourth day.EUR
EUR/USD broke below 1.07, hitting the lowest level since March 2020. The common currency is under pressure as European bank shares decline and over concerns of economic fallout from the war in Ukraine.CAD
The Canadian dollar continues to weaken against the US dollar as oil prices hold below $100/bbl. The weaker Canadian dollar comes even after Bank of Canada Governor Tiff Macklem stated that the bank will consider another rate hike of 50 bps.ASIA/PACIFIC
The Chinese yuan strengthened after a 5-day decline following comments from the PBOC stating the central bank would step up support for industries and small businesses hit by the pandemic. Onshore yuan was the worst performing Asian currency against the greenback over the last five days falling more than 2%. CNY (onshore) remains the largest gainer over the past 2 years, trading more than 8% higher. The Australian dollar traded 0.7% higher in reaction to the strength of the Chinese yuan.
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