By Karen Brettel
NEW YORK, June 7 (Reuters) – The dollar edged higher against the yen on Wednesday as investors waited for May’s US inflation data and next week’s Fed interest rate decision, while the Canadian dollar rose after the Bank of Canada’s rate hike.
The US central bank is expected to keep rates on hold next Wednesday as it assesses the impact of recent rate hikes, but federal funds futures traders are pricing in another rate hike in July.
Consumer inflation data, due out on Tuesday, is expected to push inflation to 0.30% in May. USCPI=ECI
“We expect a significant level of correction ahead of next week’s Fed decision,” said Bipan Lai, head of North American FX strategy at CIBC Capital Markets in Toronto. “The CPI numbers will also be important to the Fed’s decision. To me, it’s a given that I don’t think there’s going to be a big bet either way at this point.”
The dollar rose 0.31% to 140.10 yen. JPY=EBS, the euro rose 0.11% against the US dollar to $1.0703.dollar index = USD There was little change on this day at 104.07.
Wednesday’s data US trade deficit widens in April to widest in eight years Exports of energy products declined while imports of goods recovered.
Traders also have largely priced in expectations that the Fed will cut rates later this year as inflation is above target.
“The persistence and resilience of inflation not only in the US but also in many of the G10 countries means central banks are likely to be cautious,” said Jane Foley, chief strategist at Rabobank. rice field.
Canadian dollar rises after Bank of Canada hikes rates overnight Benchmark rate to 4.75%the highest level in 22 years.
US dollar last fell 0.23% against US dollar CAD=D3 1.3371 Canadian dollars.
Rate hikes by foreign central banks could weigh on the US dollar, but losses are likely to be limited by the prospect of another Fed rate hike in July.
The Fed could hint next week that rate hikes aren’t over yet, saying, “At this month’s meeting the Fed will get out of step with Canada, Australia and possibly the ECB, so the idea that the dollar will take a hit is short-circuited. “Maybe because they still have the idea that something will happen,” said Lou Brien, market strategist at DRW Trading in Chicago.
A day after the Reserve Bank of Australia, the Australian dollar turned negative raised interest rates by a quarter of a percentage point It was 4.1%, the highest level in 11 years.
Australia’s central bank governor Wednesday strengthened the warning Further rate hikes are planned to ease price pressures.
Australian currency Australian dollar = D3 It hit a high of $0.6718 a day earlier, the highest since May 11, before closing down 0.25 percent to $0.6657.
The offshore Chinese yuan hit its lowest level against the US dollar since Nov. 30 after data earlier Wednesday showed that: China’s exports contracted significantly more than expected in May Imports fell as manufacturers struggled to find demand abroad and domestic consumption remained weak.
CNY CNH= The lowest was 7.1465 against the dollar.
================================================== =====
Currency bid price at 3:05 PM (19:05 Japan time)
explanation
Rick
last
US ends previous session
Rate of change
YTD percent change
high bid
low bid
dollar index
= USD
104.0700
104.0800
+0.01%
0.560%
+104.2900
+103.6400
euro/dollar
Euro = EBS
$1.0703
$1.0693
+0.11%
-0.10%
+$1.0740
+$1.0669
dollar/yen
JPY=EBS
140.1000
139.6450
+0.31%
+6.84%
+140.2250
+139.0250
euro/yen
Euro Yen =
149.96
149.29
+0.45%
+6.89%
+149.9900
+148.6400
dollar/switzerland
CHF=EBS
0.9097
0.9077
+0.24%
-1.60%
+0.9100
+0.9044
sterling/dollar
GBP=D3
$1.2440
$1.2423
+0.16%
+2.88%
+$1.2500
+$1.2395
dollar/canada
CAD=D3
1.3371
1.3402
-0.23%
-1.31%
+1.3426
+1.3321
Australia/Dollar
Australian dollar = D3
$0.6657
$0.6672
-0.25%
-2.37%
+$0.6717
+$0.6643
Euro/Switzerland
euro franc =
0.9736
0.9703
+0.34%
-1.61%
+0.9737
+0.9691
euro/pound
EURGBP=
0.8601
0.8604
-0.03%
-2.75%
+0.8612
+0.8585
New Zealand Dollar/Dollar
NZD=D3
$0.6041
$0.6079
-0.58%
-4.81%
+$0.6097
+$0.6031
dollar/norway
NOK=D3
11.0330
11.0960
-0.52%
+12.47%
+11.1330
+10.9880
Euro/Norway
Euroknock =
11.8122
11.8554
-0.36%
+12.56%
+11.8950
+11.7859
dollar/sweden
SEK=
10.8937
10.9181
+0.01%
+4.67%
+10.9448
+10.8178
Euro/Sweden
EURSEK=
11.6601
11.6586
+0.01%
+4.58%
+11.6985
+11.6138
(Additional reporting by Amanda Cooper in London; Editing by Sharon Singleton, Emelia Sitor-Matterise, Nick McPhee)
((karen.brettell@tr.com))
The views and opinions expressed herein are those of the authors and do not necessarily reflect those of Nasdaq, Inc.
