September 20, 2022 09:09 GMT
- The greenback sits stronger ahead of NY hours, although the USD Index holds below the 110.00 handle for now. The Monday/Friday highs at 110.175/110.260 provide first resistance on any move higher.
- GBP also trades favourably, turning EUR/GBP back to the 0.8750 level and within range of the 0.8682 support, marking the 23.6% retracement for the Auguust - September upleg.
- Elsewere, SEK trades softer and toward the lower end of the G10 table following the Riksbank decision this morning. The bank raised rates by 100bps, however a dovish lean to the projected rate path worked against the currency, putting EUR/SEK at new multi-month highs to touch 10.8364, the highest level since mid-March.
- The decision sees smaller Riksbank hikes going forward, with a 50bps hike now seen in November - down from a 75bps forecast previously.
- Canadian CPI is on the docket Tuesday, with markets expecting Y/Y prices to slow to 7.3% from 7.6% previously. US housing starts and building permits are also due to cross. ECB's Lagarde is due to speak, speaking in Frankfurt after the European close.