Minutes released from the Federal Reserve bank yesterday afternoon included hawkish commentary which supported the greenback. Fed officials agreed to scale back bond purchasing at some point this year. The currency is trading at levels not seen since November.
August 19, 2021
EUR/USD 1.1696 GBP/USD 1.3673 USD/CAD 1.2765 AUD/USD 0.7170 USD/JPY 109.77 USD/CNH 6.4970 USD/ILS 3.2469 USD/MXN 20.1624 USD/CHF 0.9174 USD/INR 74.2475 USD/BRL 5.4295 USD/SGD 1.3637 USD/DKK 6.3584 USD/SEK 8.7811 USD/NOK 8.9958
USDA gauge of US dollar strength hit 9-month highs as investors remain concerned over the spread of the Delta variant. Yesterday, the Fed released minutes signaling a more hawkish view with most officials agreeing to scale back bond purchasing sometime this year.GBPInflation in the UK eased back to the 2% goal for the first time since April. GBP/USD is trading lower on broad USD strength.EUREUR/USD broke below the 1.17 handle hitting a low of 1.1666. ECB Chief Economist, Philip Lane stated that the central bank’s revamp of plans for interest rates is only the first step to implement the ECB’s new strategy.CADUSD/CAD trading around 1% higher breaking above 1.2750. Broad USD strength and oil prices trading near the bottom of recent ranges have pushed the currency pair higher.ASIA/PACIFIC
The Chinese yuan has continued to be resilient against the US dollar, resulting in the Chinese currency trading at stronger levels since 2016 relative to trading partners. As the US dollar has pushed higher on hawkish comments from the Fed, China’s relative success in containing the coronavirus has helped the local currency outperform.
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