Forex news for North American trade on April 28, 2021:
- Gold up $4 to $1780
- WTI crude up 82-cents to $63.77
- US 10-year yields down 1 bps to 1.61%
- NZD leads, USD lags
- S&P 500 down 3 points to 4181
The market began to sniff out a Fed that wouldn’t be jarred from its dovish stance at the start of the day and that’s exactly what happened. The dollar was modestly soft ahead of the Fed but tumbled afterwards, particularly after Powell said that it’s not the time to start talking about a taper and that a transitory rise above 2% this year wouldn’t meet the standard of a moderate overshoot this year.
With that EUR/USD rose to 1.2130 from 1.2080 before the FOMC and 1.2065 at the start of New York trade.
Cable joined the party as well, climbing 50 pips before running into offers just ahead of 1.3950.
The biggest movers were the commodity currencies as resource prices continued to rise and a moderate risk positive tone percolated. The loonie got a boost from a strong retail sales report for Feb and good advance numbers for March. That sent USD/CAD to a three-year low as it cruised below the March bottom and hit 1.2311.
On a percentage basis the kiwi did a bit better in a steady rally to 0.7265 but it sits just below the March high and 200 pips from the Feb top.