Federal Reserve Chair Janet Yellen’s vague comments yesterday have failed to bolster the US dollar, though stabilizing its fall somewhat. She acknowledged Friday’s poor data, and expressed optimism that overall data was on a positive path, but failed to give a timeline for the next hike, instead saying vaguely that hikes would be “gradual.” The greenback is still in decline against some of the majors. Even the pound sterling has pared its losses from yesterday’s session and extended its gains against the dollar this morning. Stock markets have receveid a lift from a combination of greenback weakness and surging oil prices.
The Eurozone saw the release of GDP figures early today, which showed that the economy grew 0.6% in the first quarter of the year, compared to the previous 0.3%. YOY growth was up 1.7%, compared to an estimated 1.5%. The positive data wasn’t enough to give a sustained boost to the common currency – the euro has slipped against the dollar after rising for a short period following the GDP release.
Meanwhile, the pound has mysteriously surged against other currencies, despite the presence of a clear-cut trigger. It’s been a data-light couple of days for the UK, and Brexit volatility continues, so GPB’s increase has come as a surprise. The Aussie dollar is also higher after the Reserve Bank of Australia held off on further rate cuts. RBA Governor Glenn Stevens stated that the current rate is consistent with sustainable growth in the economy, causing AUD to surge.
EURUSD: Euro slips against the dollar despite positive GDP data.
GBPUSD: Pound sustains its “mysterious” uptick against dollar from overnight, puzzling analysts.
AUDUSD: Aussie dollar soars as RBA takes on a wait and see approach to rate cuts.
USDCAD: Canadian loonie continues strength on broad dollar weakness and higher oil prices.