USD 
EUR 
GBP 
AUD
It's been a wild ride today, with the Swiss Franc holding its ground against the Yen, closing at 203.0426, which was pretty wild considering the Dallas Fed Manufacturing Index was due out later in the day. And honestly, it's surprising the Australian Dollar didn't move much against the Euro, given the geopolitical tensions, but it ended up at 0.6128. But you'd have noticed the US Dollar was under pressure, especially against the Canadian Dollar, which extended its typical April outperformance.
If you were watching the EUR/GBP cross, you'd have seen it edge lower on Monday after some brief volatility triggered by UK political jitters, and it's now trading around 0.8658. According to FXStreet, the market mood remains fragile, which is reflected in the US equity markets trading lower. And it's worth noting that MUFG's FX team thinks the Bank of Japan rate-hike expectations for April have collapsed, even with Japanese inflation data surprising to the upside. But what's really interesting is that Rabobank strategists expect the Bank of Canada to keep its overnight policy rate at 2.25% through year-end, with no change anticipated at the April 29 meeting.
The Canadian Dollar's been strengthening decisively versus the Dollar, and Scotiabank strategists observe that it's extending its typical April outperformance even as risk sentiment remains fragile. And if you look at the USD/CAD, it's declined for a second consecutive day, trading around 1.3610, down 0.44% on the day, and testing its lowest levels in six weeks.
As the day comes to a close, the Australian Dollar is at 1.2157 against the New Zealand Dollar, and the US Dollar is at 6.8223 against the Yuan Renminbi. And looking ahead, it's going to be interesting to see how the markets react to the Dallas Fed Manufacturing Index, which could give us some insight into the US economy. But for now, it's all about the central banks and their next moves.
Central Banks Steal Spotlight
If you were watching the EUR/GBP cross, you'd have seen it edge lower on Monday after some brief volatility triggered by UK political jitters, and it's now trading around 0.8658. According to FXStreet, the market mood remains fragile, which is reflected in the US equity markets trading lower. And it's worth noting that MUFG's FX team thinks the Bank of Japan rate-hike expectations for April have collapsed, even with Japanese inflation data surprising to the upside. But what's really interesting is that Rabobank strategists expect the Bank of Canada to keep its overnight policy rate at 2.25% through year-end, with no change anticipated at the April 29 meeting.
The Canadian Dollar's been strengthening decisively versus the Dollar, and Scotiabank strategists observe that it's extending its typical April outperformance even as risk sentiment remains fragile. And if you look at the USD/CAD, it's declined for a second consecutive day, trading around 1.3610, down 0.44% on the day, and testing its lowest levels in six weeks.
As the day comes to a close, the Australian Dollar is at 1.2157 against the New Zealand Dollar, and the US Dollar is at 6.8223 against the Yuan Renminbi. And looking ahead, it's going to be interesting to see how the markets react to the Dallas Fed Manufacturing Index, which could give us some insight into the US economy. But for now, it's all about the central banks and their next moves.