Comments out of the Fed supporting interest rate hikes have pushed the US dollar higher against its peers. The Canadian dollar reversed its 6-day winning streak on the broad market trend. Data out of the UK compounded with the greenback’s strength has GBPUSD trading 0.7% lower. EURUSD broke below the 1.10 handle. USDJPY traded as high as 121.41.
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March 23, 2022
EUR/USD 1.0968 GBP/USD 1.3185 USD/CAD 1.2587 AUD/USD 0.7461 USD/JPY 120.71 USD/CNH 6.3875 USD/ILS 3.2280 USD/MXN 20.2580 USD/CHF 0.9345 USD/INR 76.3015 USD/BRL 4.8925 USD/SGD 1.3583 USD/DKK 6.7815 USD/SEK 9.4840 USD/NOK 8.7850
The Bloomberg dollar index is trading 0.3% higher as more Federal Reserve officials support Jerome Powell’s call to raise rates to curb high inflation. There will be several speakers today from the Fed including Powell at a Bank of International Settlements panel, Mary Daly and James Bullard.GBP
GBP is trading lower despite data released that showed higher than expected inflation. The UK’s inflation rose to a new 30-year high of 6.2%. Chancellor Rishi Sunak is due to speak later today.EURThe EUR/USD broke below the 1.10 level on broad USD strength. The Budget chief in the EU pushed back on the idea of raising new joint debt and the EU proposed stricter rules for replenishing the region’s natural gas reserves.CADThe Canadian dollar snaps its longest winning streak in a year on broad market trends. USD/CAD is trading 0.2% higher.ASIA/PACIFIC
USD/JPY continues to trade higher as the yen weakens for a fourth consecutive day. The yen is under pressure as investors speculate that aggressive rate hikes by the Fed will cause the monetary policy divergence to widen between the US and Japan.
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