Home Daily Commentaries DXY is up despite being down versus EUR, GBP, and AUD

DXY is up despite being down versus EUR, GBP, and AUD

Weston Blystone
Written by
Weston Blystone

Weston Blystone

OFXpert

At OFX, Weston collaborates closely with businesses, guiding them and providing invaluable insights into foreign exchange strategies to mitigate risk effectively.

| Monday 12 August, 2024

Daily Currency Update

Demand for the US dollar was down against the euro and the Great British pound after leaders in those regions commented on inflationary pressures. European Central Bank officials expressed concerns about persistently high inflation and sluggish growth in major European economies.

Looking ahead this week, year-over-year and month-over-month Consumer Price Index (CPI) data will be released on Wednesday. It is expected to be higher than previous for month over month and the same 3% for year over year. This could cause further movement for the USD.

The US Dollar Index was currently up around .16% at 103.30 at the time of writing.

Key Movers

Over the weekend, ECB officials expressed concerns about persistently high inflation and sluggish growth in major European economies. Overnight, the German Wholesale Price Index (WPI) month-over-month data came out today. It was higher than expect at .3% versus .2%. While the Euro has managed to retain last week’s gains, further upside momentum appears challenging currently.

In the UK, investors will be closely monitoring the release of employment data on Tuesday and consumer price inflation on Wednesday. Employment is expected to rise to 4.5% from the previous 4.4%, while markets anticipate a significant drop in wage pressures, with forecasts of a decrease to 4.6% from the previous month’s 5.7%. If prices do not fall as much as expected, the Pound could strengthen this week.

Demand for the Canadian dollar was down this morning, as markets moved toward US dollars, euros and Great British pounds following recent developments in those markets.

Expected Ranges

  • EUR/USD: 1.0909 - 1.0933 ▲
  • GBP/USD: 1.2746 - 1.2782 ▲
  • AUD/USD: .6565 - 0.6602 ▲
  • USD/CAD: 1.3718 - 1.3744 ▲

Written by

Weston Blystone

OFXpert

Weston is on a mission to help people make the most out of their foreign exchange transfers. As Corporate Client Associate at OFX, he collaborates closely with businesses, guiding them and providing invaluable insights into foreign exchange strategies to mitigate risk effectively. Always eager to deepen his understanding and share his expertise with others, Weston finds great satisfaction in working with diverse individuals providing currency risk management strategies.