USD reverses ahead of Powell’s speech
Daily Currency Update
The US dollar saw small gains yesterday against a basket of major currencies that has reversed heading into the Friday session. Equities were back up and oil prices worked to regain ground, which continued the risk-positive environment seen earlier this week. New Home Sales numbers for July are set to be released later this morning, but the biggest focus for the market will be Federal Reserve Chair Jerome Powell’s address at the annual Jackson Hole Economic Summit. Markets will be looking for him to drop clues as to what the central bank might do at its September meeting.Key Movers
The Euro and GBP both regained ground this morning after giving up gains from earlier this week during yesterday's profit-taking moves. This suggests that both currencies could see further gains against the Greenback.The Canadian dollar is continued the trend from earlier in the week, making gains against the USD as oil bumped up and markets focused in on September rate cuts south of the border. The Loonie performed well this morning in spite of muted consumer spending. Retail sales released this morning for June showed a -0.3% drop in sales in Canada, in line with expectations. Oil prices rebounded this morning with the benchmark West Texas Intermediate (WTI) price rising more than $1 a barrel heading into the North American session after cooling off on demand concerns from China.
Expected Ranges
- EUR/USD: 1.11 - 1.1173 ▲
- GBP/USD: 1.3080 - 1.3163 ▲
- AUD/USD: 0.6698 - 0.6773 ▲
- USD/CAD: 1.3580 - 0.3677 ▼