Daily FX Update

The USD is rebounding as rising US Treasury yields and inflation risks pressure global currencies, driving the INR and IDR to record lows and leaving the EUR and CAD defensive.

Key Takeaways

• 1.The USD is strengthening against G10 and major EM currencies, targeting the 99.25/50 gap on the DXY chart as bond yields rise due to inflation and fiscal concerns.
• 2.Emerging market currencies INR and IDR have hit record lows due to high energy prices disrupting current account dynamics and inflation fears.
• 3.The CAD remains defensive despite firm crude oil and yields, with focus shifting to Canadian CPI data which may test the Bank of Canada's patience.

Table of Contents

• Overview
• USD Firm As Yields Rise On Inflation (And Fiscal) Risk
• USDCAD (1.3765)
• EURUSD (1.1615)
• GBPUSD (1.3398)
• USDJPY (159.15)
• Today's Calendar

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