Home Daily Commentaries USD takes a downward turn to end the week

USD takes a downward turn to end the week

Daily Currency Update

The US Dollar Index (DXY) was down -0.25% this morning as investors moved money out of US Treasuries and into the equities markets. The Durable Goods orders released this morning showed an unexpected upturn to 0.7% growth, a swing from the expected -0.8% drop. The US dollar was also under pressure as the euro gained as a result of positive Gross Domestic Product (GDP) growth in Germany.

Key Movers

The Euro led the way in gains against the US dollar this morning as GDP moved back to growth in Germany. Economic activity in the EU’s biggest economy grew by 0.2% in the last quarter after faltering in the previous quarter. This had the euro up over half a percent against the greenback heading into the North American session.

The GBP made small gains against the USD but was losing against the Euro so fa today. The retails sales release this morning showed sales down 3% in April, lower that the consensus -1.1%.

The Canadian Dollar is made small gains this morning as equities rose. The Loonie showed muted improvement compared to other majors, despite retail sales in Canada showed a drop of -0.2% last month.

Expected Ranges

  • EUR/USD: 1.0805 - 1.0895 ▲
  • GBP/USD: 1.2683 - 1.2757 ▲
  • AUD/USD: 0.6594 - 0.6649 ▲
  • USD/CAD: 1.3660 - 1.3751 ▼