Daily Currency Update

USD - US Dollar

The USD is slightly weaker today, continuing yesterday's decline as yields fall from this week's early highs. This shift comes amid investor repositioning following a surge in US yields and reduced expectations for Federal Reserve rate cuts. The US 2-year yield is around 5%, and the 10-year yield has dropped sharply from 4.70%. Bond markets are rallying mildly, and global stocks are mostly stronger. Metals prices are up slightly, while crude oil prices have decreased by about 1%. The Dollar Index (DXY) may have peaked around 106.50 and could retreat to the low 105s soon. Today, the US will release data on weekly claims, the Philly Fed Business Outlook, existing home sales, and leading indicators. Fed officials, including Bowman, Williams, and Bostic, are speaking today, reiterating familiar messages about no rush to cut rates.

CAD - Canadian Dollar

The CAD is slightly stronger today, mostly reflecting the USD's broader movement. Improved risk appetite is marginally boosting the CAD, and its current trading suggests potential for further short-term strength. However, wide short-term interest rate differences between the US and Canada will continue to support the USD on any declines. Observe USD/CAD trends. 

EUR - Euro

The EUR is stable today, hovering around 1.0690 after overnight trading. Despite ECB Governor Nagel's cautious remarks on a June rate cut, which contrasted with earlier assurances from Villeroy, a rate reduction in June still appears likely but could proceed slowly. Governor Vasle noted today that while US and Eurozone economic conditions may call for different monetary policies, there are limits to how much these policies can diverge.

GBP - British Pound

Sterling has slightly appreciated today, though there are no significant updates from new data or official remarks. The gains mainly mirror a softer USD tone. UK Retail Sales data will be released on Friday.