USD eases from 20-year highs
Daily Currency Update
Demand for the US dollar eased on Monday after hitting 20-year highs last week. Investors were focused on weak economic data from China to start the week, showing just how much the recent COVID-19 lockdowns in Beijing and Shanghai affected the economy. Industrial output fell 2.9% in April year-over-year, economists expected a 0.5% increase. Retail sales fell 11.1% in the period, weaker than a projected 6.6% drop. The US Dollar Index was down 0.17% at 104.39 at the time of writing.Key Movers
EURUSD was little changed on Monday after Germany released the April Wholesale Price Index, which increased 2.1% from the revious month and 23.8% from the previous year, much worse than anticipated. The European Commission downgraded its growth forecast from 4% to 2.7% against the backdrop of the Russia-Ukraine conflict. EURUSD was trading around 1.04197 at the time of writing.GBPUSD held around 1.22 as Bank of England Governor Andrew Bailey and policymakers testified on inflation and the economic outlook before the UK Treasury Committee. Monetary Policy Committee members said external factors contributed to majority of the recent inflation surge.
Expected Ranges
- EUR/USD: 1.039 - 1.0435 ▲
- GBP/USD: 1.2221 - 1.2279 ▲
- AUD/USD: 0.6878 - 0.6956 ▲
- USD/CAD: 1.288 - 1.298 ▼