Daily Currency Update

USD - US Dollar

The USD's performance against major currencies is mostly unchanged as markets look ahead to the month-end and upcoming long weekend, with limited activity in key currencies. There's little immediate focus for the markets, except for Fed Governor Waller's speech in New York on the economic outlook, including an audience Q&A, scheduled for this evening. Also noteworthy are upcoming speeches by Daly and Powell on Friday, coinciding with Easter closures in many markets. Powell's recent comments have increasingly mentioned the labor market, hinting it may be gaining attention from the Fed amid slow progress on inflation. Following a successful 5Y Treasury auction, a $43 billion 7Y note auction is set for today.

CAD - Canadian Dollar

The USD/CAD pair's recovery from mid-1.35s yesterday continued into the low 1.36s before the USD slightly retreated, highlighting the recent trading's range-bound nature. Currently, the spot is trading close to its fair value estimate (1.3592), and with the USD showing little change today, the recent high points are likely to remain intact. Bank of Canada Deputy Governor Rogers' remarks yesterday primarily addressed Canada's productivity, noting the central bank's progress on inflation but emphasizing the need to "finish the job." Rogers also discussed the impact of Canada's comparatively low productivity growth and the urgency to boost domestic business investment.

EUR - Euro

The unexpected rise in Spanish inflation, with prices increasing by 0.8% compared to the anticipated 0.6%, didn't significantly impact markets as similar past events have. ECB policymakers remain focused on the timing of rate cuts, with June being the probable start for easing. The currency spot has hovered around 1.0830 for much of today, and dips near 1.08 may still be seen as buying opportunities by bargain hunters.

GBP - British Pound

The pound remains mostly unchanged today, possibly as London traders extend their upcoming long weekend. Overnight, there were no significant data releases or news from the UK. In the near term, expect Cable to continue trading within a narrow range.