A broad-based rally in the USD continues ahead of Wednesday’s event-filled NA session that will include the release of ADP employment figures, the US Q2 GDP data (advance, first of three), and the FOMC policy decision and statement. SEK is exceptionally weak on the back of a softer GDP release, as CAD and AUD underperform most of their peers. GBP and JPY continue to fall, trading at the lower end of their two-month range, while EUR flirts with 1.34—trading at its lowest level since mid-November. Overall, the USD has maintained broad strength through July (middle chart), rising between 0.75% and 3.00% against key G10 currencies. Wednesday’s broader market tone is one of modest risk-appetite, with equity futures rising alongside the US 10Y yield, as gold, oil and copper consolidate. The US 2Y yield remains ele-vated, at its highest level since mid-2011, driven by Fed expectations and providing for broad-based USD gains.
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