USD 
EUR 
GBP 
JPY
The Canadian Dollar was looking pretty rough after those softer-than-expected GDP figures came out, but it managed to recover some ground against the US Dollar on Friday. Which was pretty wild, considering the US Dollar didn't exactly have a great day either. According to FXStreet, the USD/CAD pair reversed its intraday gains, and the Canadian Dollar was able to bounce back from its earlier weakness. And if you were watching the AUD/USD pair, you'd have noticed it was advancing towards the 0.7180 region, thanks to the US Dollar being under pressure.
But what's really driving this move is the renewed hopes for a longer-lasting economic recovery, and the fact that the US Dollar is still feeling the effects of the Fed's dovish stance. Fed Governor Michelle Bowman said progress on lowering inflation has stalled, which isn't exactly what the markets want to hear. And Anna Paulson, President of the Federal Reserve Bank of Philadelphia, pointed out that inflation is a drag on the US economy. So, it's no surprise that the US Dollar is struggling. The British Pound, on the other hand, is getting some support from hawkish remarks by Bank of England Governor Andrew Bailey, which is helping the GBP/JPY pair trim some of its earlier losses.
If you take a look at the closing rates, you'll see that the US Dollar / Mexican Peso is sitting at 17.3383, which is pretty much unchanged from the day before. The British Pound / Euro is at 1.1545, also unchanged, and the Australian Dollar / British Pound is at 0.5340. The British Pound / Yen is at 214.5734, which is also unchanged. According to ForexLive, inflation pressures are weighing on the economy, and firms are having a hard time planning for the future. But despite all this, monetary policy is still considered to be mildly restrictive, and inflation is just too high.
As we head into the next trading week, it's going to be interesting to see how the US Dollar responds to all this pressure. Will it continue to struggle, or will it manage to bounce back? And what about the Canadian Dollar - can it keep recovering, or will it fall back down again? One thing's for sure, it's going to be a wild ride.
Dollar Under Pressure
But what's really driving this move is the renewed hopes for a longer-lasting economic recovery, and the fact that the US Dollar is still feeling the effects of the Fed's dovish stance. Fed Governor Michelle Bowman said progress on lowering inflation has stalled, which isn't exactly what the markets want to hear. And Anna Paulson, President of the Federal Reserve Bank of Philadelphia, pointed out that inflation is a drag on the US economy. So, it's no surprise that the US Dollar is struggling. The British Pound, on the other hand, is getting some support from hawkish remarks by Bank of England Governor Andrew Bailey, which is helping the GBP/JPY pair trim some of its earlier losses.
If you take a look at the closing rates, you'll see that the US Dollar / Mexican Peso is sitting at 17.3383, which is pretty much unchanged from the day before. The British Pound / Euro is at 1.1545, also unchanged, and the Australian Dollar / British Pound is at 0.5340. The British Pound / Yen is at 214.5734, which is also unchanged. According to ForexLive, inflation pressures are weighing on the economy, and firms are having a hard time planning for the future. But despite all this, monetary policy is still considered to be mildly restrictive, and inflation is just too high.
As we head into the next trading week, it's going to be interesting to see how the US Dollar responds to all this pressure. Will it continue to struggle, or will it manage to bounce back? And what about the Canadian Dollar - can it keep recovering, or will it fall back down again? One thing's for sure, it's going to be a wild ride.