The USD remains under some pressure trading near its lowest level in almost three week sas traders await the release of the FOMC minutes for a fresh directional impetus. It’s generally expected that the Fed will eventually start easing midyear and market anticipates a total of four 25bps by the end of the year – underpinning the USD.
Inother news. Zelenskyy says Ukrainian troops pulled back from strategiccity in part due to a lack of ammunition. Canada has signalled it's prepared toget behind a Czech Republic initiative to ship tens of thousands of artillery shells from different countries. Iran accuses Israel of sabotage attack that saw explosions strike natural gas pipeline. World Food Programme stops deliveries to northern Gaza.U.S. plans sanctions against Russia over Alexei Navalny's deathwhile France summons Russian ambassador and calls for an investigation.
Incurrency news. China's decision to lower its five-year Loan Prime Rate by 25 bps to support its economy might provide some support for the Euro, Chinese banks have approved property development loans of $17.20 billion as part of aspecial mechanism to inject liquidity into the sector. Thai central bank minutes show economic outlook uncertain, ready to adjust rates if significant change. Bank Indonesia holds rates, signals cut in second half. The CNY and JPY are flat, MYR is up 0.06%, TWD is down 0.23%, The AUD and NZD are both up 0.14 and 0.40%r espectively. The trading currencies, MZN and ZAR are flat to start the day.
Incommodity markets. Oil prices regained some ground in Asian trade amid concernsover attacks in the Red Sea and growing expectations that cuts to U.S. interestrates will take longer than thought. Oil prices trades down 0.56%, Nat Gas is down0.83%, Gold and silver moves higher 0.25% and 0.47% respectively while copper isoff 0.14%. Agricultural commodities are under pressure this morning with thismorning Wheat trading .070% lower and soybean retreats 0.7%.
Currentlevel USDIndex 104.148 Up 0.07%
The USD/CAD spiked higher after yesterday’s lower than expected inflationfigures. In recent days, the USD/CAD haven’t been able to keep their gains aftersuch move higher, we will have to see if this will repeat itself after the FOMC minutes are released. Canadian retail sales are set to be released Thursday.
Currentlevel USD/CAD 1.3520 Up0.02%
TheEUR/CAD rallied significantly after yesterday’s CDN CPI figures. But seemsto find some resistance at the open. Perhaps the FOMC minutes will stir things up.
CurrentlevelEUR/CAD 1.4560 Up 0.17%
The EUR/USD faces challenges in extending its winning streak initiated onFebruary 14 possibly due to market caution amidst diminished expectations forearly interest rate cuts worldwide.
CurrentlevelEUR/USD 1.0800 Flat%
GBP/EUR snaps its five-day losing streak, edging lower on the back of positive comments from BoE’s Bailey. He acknowledged that investors speculating on interest rate cuts this year are not unreasonable. However, he emphasized indicators suggesting that the British economy was rebounding following a recession in late 2023. Bailey also noted that rate cuts could precede inflation dropping below 2%, though he refrainedf rom providing a precise timeline.
Currentlevel GBP/EUR 1.1676 (0.8562) Flat%
TheGBP struggles to hold onto gains. The upside move in the GBP/USD wa sinconsistent with the pace at which the USD fell due to Bailey dovish comments.
CurrentlevelGBP/USD 1.2605 Down0.10%
Otherccy levels vs C$. GBPCAD 1.7057 AUDCAD .8863 CADCHF.6509 CADJPY 110.96 CADTHB 26.48 CADCNY 5.3131 CADNOK 7.7560 CADSEK 7.6767 CADDKK 5.1020 CADZAR 13.9765
Otherccy levels vs USD. JPY 150.05 CHF.8804 AUD.6549 NZD .6180 CNY7.1891 MXN 17.0520 INR 82.930 PLN 3.9940 CZK 23.502 ZAR19.0048 ILS 3.6766 AED 3.6724 KWD 0.3077
OtherMajor X levels. EURCHF.9508 EURJPY 162.03 EURSEK 11.2116 EURNOK 11.3213 GBPCHF 1.1105 EURAUD 1.6474 GBPAUD 1.9243 AUDCHF.5769 AUDJPY 98.31 CHFJPY 170.42
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