Daily Currency Update
After a tumultuous day on Monday that saw the USD generally make gains, it is starting Tuesday up on Fed outlooks. In four separate speeches from different governors yesterday the Fed’s messaging was clearly hawkish. In a speech from St, Louis Fed President James Bullard it was reiterated “we’ve got a ways to go to get restrictive on policy.” Key data today sees consumer confidence expected to fall from 102 to 100. Markets are also looking ahead to tomorrow’s speech from Fed Chair Jerome Powell followed by CPE data on Thursday.
Key Movers
The euro held gains overnight as the ECB has begun to adopt a more hawkish tone. Also, in overnights, the Chinese and Hong Kong Indices regained much of the losses from the previous session as Chinese police cracked down on protestors. This has brought some calm to the outlook on the activity coming from China. Oil is regaining helping commodity currencies after speculation is that OPEC+ might make further cuts to production quotas in order to keep prices elevated.
Expected Ranges
- EUR/USD: 1.0333 - 1.0465 ▼
- GBP/USD: 1.1943 - 1.2081 ▼
- AUD/USD: 0.6641 - 0.6745 ▼
- USD/CAD: 1.3412 - 1.3546 ▲