DXY holds steady ahead of Wednesday’s rate announcement
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Daily Currency Update
The US Dollar Index (DXY) was still rallying this morning after the major moves markets saw on Friday from hotter-than-expected job numbers. The DXY hovered near the 104.94 mark so far today. Markets are expecting rates to remain the same on Wednesday during the Federal Reserve’s rate decision. The European Central Bank (ECB) and the Bank of Canada (BoC) both dropped rates, priming a potential diversion in interest rates with the Fed.Key Movers
In the Eurozone and UK, the GBP climbed to a 34-month high against the euro today amid the ECB’s interest rate cut last week which pushed the EUR down and expectations that the Bank of England (BoE) will push back rate cuts to August or September, which bolstered the pound. Another factor leading to the euro’s slide was French President Emmanuel Macron’s call for a snap election after his party suffered a defeat in elections for the European Parliament.In Japan, reports for annualized Gross Domestic Product (GDP) growth came in at -1.8%. This is above the forecasted -1.9%. While these numbers were slightly better than expected, it still shows contraction.
The Canadian dollar remained down against most major currencies today after the BoC cut rates last week for the first time since 2020. The unemployment data released on Friday did not help the CAD gain much strength either as unemployment continued to rise. Oil was up more than a percent this morning, to sit near 76.45 dollars a barrel.
Expected Ranges
- EUR/USD: 1.07328 - 1.08033 ▼
- GBP/USD: 1.2688 - 1.2731 ▼
- AUD/USD: 0.6576 - 0.6602 ▲
- USD/CAD: 1.3755 - 1.37816 ▲