DXY lifts slightly as markets follow Powell’s comments
Daily Currency Update
The US Dollar Index (DXY) rose slightly this morning to the 107.72 level. Markets closely watched Federal Reserve Chair Jerome Powell’s comments highlighting the slowing job market which may signal nearing rate cuts. The market remained calm as Powell delivered a neutral statement overall. He refrained from providing a timeline for rate cuts. In data news, Thursday's US Consumer Price Index for June, which measures the average change in prices paid by urban consumers over time, is the key moment of the week for many investors. The headline rate is expected to fall to 3.1%, with 'core' rates still stuck at 3.4%.Key Movers
In the Eurozone, political paralysis continued in France with none of the main parties any closer to being able to form a government following France’s snap election called last month by President Emmanuel Macron. The deadlock will likely continue to be a headwind for the euro until the impasse is resolved. The EUR/USD pair rose by around 0.12% so far today to the 1.0827 level.The next major data of note from the UK is set to be released tomorrow morning. It will be the first estimate of Gross Domestic Product (GDP) for May. Growth of 0.2% is expected month-over-month after grinding to a halt in April. The GBP/USD pair lifted this morning by around 0.47% to the 1.2845 level. Similarly, the GBP/EUR pair rose by around 0.36% so far this morning to the 1.186 level.
This morning, the USD/CAD pair fell by around -0.13% to the 1.36179 level. This fall came even as the USD rose slightly following Powell’s comments. The CAD may have been bolstered in part by rising oil prices. West Texas Intermediate (WTI) crude oil rose by around 0.23% so far today to the 82.071 level.
Expected Ranges
- EUR/USD: 1.0808 - 1.0828 ▲
- GBP/USD: 1.278 - 1.2847 ▲
- AUD/USD: 0.6736 - 0.6749 ▲
- USD/CAD: 1.3609 - 1.3642 ▼