Currency pairs remain largely unchanged amidst year-end trading and tight liquidity. The US dollar is on pace for its best year since 2015. The only G-10 currency to strengthen against the greenback for 2021 is the Canadian dollar. The US dollar is expected to close the year 5% higher than a basket of currencies despite its move lower for the month of December.
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December 31, 2021
EUR/USD 1.1349 GBP/USD 1.3521 USD/CAD 1.2675 AUD/USD 0.7260 USD/JPY 115.05 USD/CNH 6.3555 USD/ILS 3.1021 USD/MXN 20.3786 USD/CHF 0.9129 USD/INR 74.3375 USD/BRL 5.5713 USD/SGD 1.3482 USD/DKK 6.5533 USD/SEK 9.0594 USD/NOK 8.8240
The USD remains largely unchanged as we approach the end of 2021. The greenback is on track for its best annual performance in six years as investors anticipate monetary policy tightening for 2022. The Bloomberg Spot Index is on pace to close 5.1% higher for the year despite the 0.5% pullback for December.GBPSterling is set to decline 1.1% for 2021, its first annual decline in 3 years. GBP is amongst the top performing currencies for the last trading day of the year.EUR
EURUSD rebounded from the 1.13 level remaining within recent ranges amidst low year-end liquidity. The currency pair is on track to decline 7% for 2021 largely on the divergence between the Fed and ECB.CADThe Canadian dollar is set to be the G-10’s second best performer after the US dollar. CAD is the only G-10 currency to gain against the greenback during 2021. The loonie leads gains for G-10 currencies on New Year’s Eve despite the drop in WTI crude oil prices.ASIA/PACIFICAustralian dollar remains largely unchanged amidst year-end positioning. AUDUSD and NZDUSD set to close out the year down by 5.7% and 4.9% respectively. USDJPY holds above 115, trading below its year-to-date high of 115.52.
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