US dollar trading mixed ahead of central bank meetings
There were no economic data releases yesterday out of the US and Fed speakers remain quiet ahead of next week’s Federal Reserve meeting. The US dollar is trading mixed against its peers and traders are focused on the upcoming central bank meetings. Data out of the UK showing inflation did not accelerate as much as expected put downward pressure on sterling.
April 21, 2021
EUR/USD 1.2001 GBP/USD 1.3891 USD/CAD 1.2632 AUD/USD 0.7708 USD/JPY 108.0600 USD/CNH 6.4935 USD/ILS 3.2656 USD/MXN 19.9012 USD/CHF 0.9188 USD/INR 75.4613 USD/BRL 5.5695 USD/SGD 1.3308 USD/DKK 6.1933 USD/SEK 8.4591 USD/NOK 8.3803
The Bloomberg Dollar Index is trading slightly stronger, breaking its losing streak. US equity futures are trading mixed while the 10-year Treasury yield gained 1 bps, trading at 1.57%.GBPSterling is trading weaker against the US dollar following mixed data out of the UK. Inflation data showed that consumer prices rose 0.7% versus the 0.8% increase expected.EUREUR/USD is one of the worst performers falling 0.2% and trading just above the 1.20 level. The European Central Bank is due to meet on Thursday and investors are not expecting any news that will have a meaningful impact on FX markets.CADUSD/CAD holds higher trading above 1.2630 ahead of a Bank of Canada meeting later today. The central bank could give hints on how they may bring forward their interest-rate hike timeline - current guidance suggests no more before 2023.ASIA/PACIFIC
USD/JPY is near flat as Japan considers strategies that could control the spread of the coronavirus. The next level of support for the currency pair is at 108.00.
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