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US dollar stays resilient

Daily Currency Update

The US dollar stayed resilient against a basket of currencies on Thursday morning, still supported by rising US Treasury bond yields. Investors also remained cautious as they awaited comments by US Federal Chair Jerome Powell at a panel discussion hosted by the International Monetary Fund at 1 p.m. eastern.

In focus tomorrow will be the Markit Purchasing Managers' Index (PMI), a leading indicator of economic health, which will give the market an early glimpse into how inflationary pressures are evolving, which could help shape expectations for Fed tightening. However, there is broad consensus that this year's expected rate hikes have been largely priced in. The US Dollar Index was up 0.05% trading at 100.45 at the time of writing.



Key Movers

The Eurozone enjoyed better-than-expected trade data yesterday and some optimistic remarks from Mārtiņš Kazāks, a policymaker at the European Central Bank, who has said that it could be possible to raise its interest rate as early as July. The ECB is still lagging behind the Bank of England in terms of monetary policy. The BoE has already hiked three times, bringing the bank rate to pre-pandemic levels and more rises are likely on the way. Yesterday saw the first presidential debate in France between Macron and Le Pen with the latest polls suggesting that macron is at 56.5%, which should provide the Euro with some support. EURUSD was down 0.05% trading at 1.08429 at the time of writing.

Expected Ranges

  • EUR/USD: 1.0826 - 1.0935 ▼
  • GBP/USD: 1.3028 - 1.3088 ▼
  • AUD/USD: 0.7373 - 0.7456 ▼
  • USD/CAD: 1.2462 - 1.2541 ▲