Daily Forex Report - USD steamrolls G10 set
Daily Forex Report - USD steamrolls G10 set; Sterling (GBP) struggles; Aussie dollar (AUD) plummets
The greenback hits parity with the Swiss franc (CHF) for second time this year
Sterling slid another 50 pips against the US dollar this morning, as traders hold their collective breath for the bank of England’s withdrawal of its bond-buying scheme at the end of the week.
Returning to quantitative tightening should theoretically drive inflation down (at least in the long run); nonetheless, bears have the advantage over the GBP/USD pair at the US$1.10 mark.
GBP/USD sheds another 0.5% on Tuesday morning – Source: capital.com
The Euro gained against the pound too, with 0.3% added to the EUR/GBP pair, while the Japanese yen and Swiss franc also climbed against the pound.
UK unemployment figures came in better than expected this morning, while the latest round of GDP figures showed the economy was steering clear of a recession for the moment.
The US dollar continues to steam ahead in its relentless appreciation against the rest of the G10 set.
EUR/USD is sitting at US$0.97, but the big news is the parity just achieved against the Swiss franc for the first time since May.
As for the USD/JPY pair, it’s sitting pretty at yearly highs of 145.7 yen.
Downunder, the Australian dollar just hit its lowest point against the greenback since March 2020, having dropped 0.5% to US$0.62.
Understanding your FX risk and exposure is paramount to your bottom line. Contact Currency Solutions today and find out how we can help you with:
- Hedging and FX Strategies
- Best rates for Spot trades
- vIBAN set up
- E-commerce solutions
Click here for find out more.