USD rises against most major currencies amid sluggish manufacturing data
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Daily Currency Update
The US dollar was up this morning, posting gains above 0.4% against most major currencies. The US manufacturing survey from the Federal Reserve Bank of Richmond reported an improvement in manufacturing activity from -7 in April to 0 in May. Overall, manufacturing outlooks are still muted but have improved month over month.Key Movers
In Eurozone news, Germany reported annual inflation at 2.4% in May, matching forecasts. This was up from 2.2% in April. Inflation largely cooled and was within the target range for the European Central Bank (ECB). Germany also reported consumer confidence, which continued to rise. Consumer confidence came in at -20.9 from -24 in the previous month. The overall outlook of the economy in Germany has steadily been improving. Poland also released data which showed lower-than-expected inflation at 2.5%, still above the April inflation print of 2.4% which showed inflation moderating slowly.While there was little notable data related to the CAD this morning. Markets saw the USD/CAD pair remain above 1.36 for the past couple of months which has proven to be a strong support level for the pair. The market will see more direction next week as the Bank of Canada (BoC) makes its rate decision. Expectations remain that the rate will stay flat.
Expected Ranges
- EUR/USD: 1.08088 - 1.08612 ▼
- GBP/USD: 1.27049 - 1.27717 ▼
- AUD/USD: 0.66135 - 0.66661 ▼
- USD/CAD: 1.36395 - 0.37141 ▲