2022-05-03 14:20:02 $ECON Economic Data
05/03/22 05/0314:20 05/03/2214:20 | FX update: the dollar index remains inside a narrow intraday rangeFX update: the dollar index remains inside a narrow intraday range between 103.029 and 103.74. After the slide in yields was a catalyst for profit taking from the 20-year highs hit overnight, the index has bounced back to the 103.45 area. The advent of what is expected to be a hawkish FOMC also remains supportive. The greenback is rallying against the EUR and GBP to 1.0530 and 1.2503, respectively, but is still soggy versus JPY at 130.05. After jumping overnight after the aggressive RBA move, GBP has softened again ahead of Thursday's BoE meeting where policymakers face a very tough choice between inflation and growth. And while BoE hawks will find support from solid job data, after two 25 bp rate hikes and another hike expected this week, the bank is also starting to worry about the impact of cost of living crisis on future demand. That could result in a dovish hike and likely weaken GBP further. |
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