USD taking downturn this morning
Daily Currency Update
Demand for the US dollar was down against the basket of other major currencies heading into the weekend. The USD Index (DXY) was down a quarter percent heading into Friday’s North American session. One of the factors impacting this is the release of building permits for July. The information that came out this morning showed a 4% drop in permits issued, and the lowest level since 2020. This leading data point shows an expectation of slowing demand in the housing market, a sign of a slowing economy.Key Movers
The euro was up today against the USD as European trade data showed an unexpected hike in exports. A release this morning from the EU showed overall trade at a net balance of $22B in June. This was significantly better than the expected $13B and the previous $14B.Oil prices were softer heading into the session as well, with the WTI benchmark price dropping back to the $76 range as overnight releases are bringing renewed concerns of soft demand in China.
The Canadian dollar is even to yesterday’s close as data points pull the Loonie in separate directions. On one hand, oil was down nearly $2 per barrel, hurting the oil focused currency. On the other hand, stronger than expected housing starts last month helped CAD to hold position. Data from Stats Canada this morning showed starts for the year at 279.5K new homes versus the expected 245K.
Expected Ranges
- EUR/USD: 1.0930 - 1.0995 ▲
- GBP/USD: 1.2803 - 1.2912 ▲
- AUD/USD: 0.6598 - 0.6662 ▲
- USD/CAD: 1.3697 - 1.3783 ▼