The Canadian dollar could be renewing its 2021 rally against its US peer in the middle of the trading week, buoyed by better-than-expected economic data from earlier this year. The loonie also found additional support on rising crude oil prices and optimism for future economic prospects. Can the Canadian dollar break below 1.25 next month?
The British pound fell against the much stronger dollar, extending yesterday’s losses amid disappointing UK inflation figures attributed to massive discounts and lockdown measures. The GBP/USD currency pair’s decline was also driven by negative investor sentiment as markets anticipate the disruption of Britain’s vaccination drive due to supply interruptions.
The South African rand is rebounding against its US peer in the middle of the trading week. With a renewed rally in the broader financial markets, investors are pouring back into emerging market currencies. Can the rand maintain support below the 15.00 mark against the greenback? It might depend on the economic recovery and the market’s appetite for EM currencies.
The Canadian dollar is modestly sliding against its US peer in the middle of the trading week, ostensibly hitting the pause button as one of the world’s top-performing currencies. The loonie is paring its gains mostly on falling energy prices, as well as investors seeking shelter in conventional safe-haven assets, like the US dollar and the Swiss franc. But what about domestic data?
The euro fell against the dollar fueled by the negative investor sentiment following dovish comments from an ECB policymaker regarding rising European yields. The EUR/USD currency pair’s rally was further driven by the surge in US Treasury yields as bonds sold off following the signing of the $1.9 trillion US stimulus bill.
The euro fell against the dollar after inching higher initially fueled by positive PMI data from the euro area before heading lower as investor sentiment shifted. The EUR/USD currency pair’s decline was fueled by dovish comments from European Central Bank policymakers who spoke in favour of more stimulus.
The Turkish lira extended its weakness against the US dollar in the middle of the trading week. Despite being one of the few economies to avoid a contraction during the coronavirus pandemic in 2020, the lira has been witnessing a selloff in foreign exchange markets. Inflation continues to be a significant worry for investors.
The Swiss franc fell today as continuously rising yields and risk appetite made investors less interested in currencies considered to be safe. The Swissie lost even to the Japanese yen — another currency considered to be a safe haven. Switzerland’s macroeconomic data was poor, adding to pressure on the Swiss currency.
Commodity currencies were among the strongest on the Forex market during Friday’s trading, with the New Zealand dollar outperforming all other most-traded counterparts, except for the Australian dollar. Domestic macroeconomic data released overnight was largely positive but did not give the New Zealand currency a noticeable boost.
The euro fell against the resurgent dollar buoyed by rising US Treasury yields and upbeat US retail sales figures amid a mostly empty European docket. The EUR/USD currency pair was under intense selling pressure for the second consecutive day after hitting 3-week highs largely driven by the dollar.
