Daily Currency Update
The U.S. Dollar Index has shown a modest increase, currently standing at 103.144 USD, reflecting a 0.21% rise over the past 24 hours. The USD/CAD pair is experiencing slight intraday losses during the early European session, trading around the 1.3775-1.3770 range. Despite holding above a two-week low reached on Tuesday, caution is advised before expecting further declines from this week's sharp slide from the mid-1.3900s, a level near a two-year high. Crude oil prices have gained positive traction, breaking a four-day losing streak and underpinning the commodity-linked Canadian Dollar (Loonie). This trend is exerting downward pressure on the USD/CAD pair for the third consecutive day. However, concerns about economic downturns in both the US and China, the world's largest economies, continue to act as a headwind for oil prices.
Key Movers
The EUR/USD pair has stabilized above the 1.0900 mark as market sentiment improves, partly due to comments from Bank of Japan (BoJ) Deputy Governor Shinichi Uchida. His dovish remarks cooled expectations of a near-term interest rate hike, helping stabilize Asian markets. Despite a recent 15 basis points rate hike by the BoJ, the Japanese Yen (JPY) surged following the comments. The GBP/USD pair has regained some ground, trading around 1.2710 during the Asian session. This recovery is attributed to growing expectations of a more aggressive US Federal Reserve rate cut starting in September, following weaker US employment data in July that heightened recession fears. Additionally, the JPY saw an impressive rally, climbing 8.5% against the USD in July and early August, boosted by interventions and the BoJ rate hike, reaching an eight-month high.
Expected Ranges
- EUR/USD: 1.09056 - 1.09366 ▼
- GBP/USD: 1.2681 - 1.2736 ▲
- AUD/USD: 0.65098 - 0.65746 ▲
- USD/CAD: 1.37211 - 1.37907 ▼