The U.S. dollar continued its recent bullish rally overnight, extending its recent gains by 0.2%.
Overview
The greenback got a boost yesterday following comments from St. Louis Fed President James Bullard. Bullard, a perennial hawk, said that a 75-basis point interest rate hike should not be ruled out. Markets are pricing in a 98% chance that the Fed will hike rates by 50 basis points at the conclusion of its May 4th meeting. The dollar is up for three consecutive days. The economic docket is fairly light today. The Commerce reported that housing starts beat estimates, rising 1,793K. Building permits also beat expectations but the prints have had a little material effect on the greenback. With little more on today’s agenda, traders will continue to trade Russia/Ukraine headlines before a slew of Fed speakers tomorrow.
What to Watch Today…
- No major economic events scheduled for today
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CAD
The Canadian dollar is losing against its American rival this morning, falling with the price of oil. WTI crude futures fell over 2.0%, trading as low as 105.80 a barrel. The loonie initially gained early in the evening but reversed course around 4 a.m. The economic docked showed Canadian housing starts fell to 246K in March, down from 520.2 in February, adding downward pressure on the Canadian dollar.
JPY
The beleaguered Japanese yen continues its historic slide versus the U.S. dollar. The yen has weakened for 13 consecutive days against the greenback, the longest run of losses since data began in 1971. Japanese policymakers are furiously trying to verbally intervene in the market. Most recently, Japanese Finance Minister Suzuki said the currency was “weakening rapidly” but the verbal intervention has had little effect. Traders point to the need for physical intervention in markets to stop the yen’s decline.The Japanese yen has fallen 5.0% since April 1st.
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