USD mostly unchanged to end the week
Daily Currency Update
The US Dollar Index (DXY) remained relatively even heading into Friday’s trading in North America after dropping off yesterday following Wednesday’s interest rate cut from the Federal Reserve. Stock markets gained yesterday on investor optimism but pulled back somewhat in early morning trading. Next week is light on data until Friday with the Personal Consumption Expenditure (PCE) inflation numbers, the Fed’s preferred inflation measure. This means that the greenback will be moving largely on broader market sentiment for most of next week.Key Movers
The euro held the gains it made yesterday as markets moved to a new reality of rate cuts from the US Fed. Overnight, the Producer Price Index (PPI) data in Germany came in higher than expected. PPI numbers, which measure the average change in the prices that domestic producers receive for their goods and services, were up 0.2% month over month in August, showing some positives for Europe’s biggest economy.The GBP also held onto gains it made yesterday following the decision from the Bank of England (BoE) to leave rates at 5%. Concerns about inflation in the UK drove the bank to leave interest rates in a place where they hope to get price increases under control.
The Canadian dollar sat in a similar range to yesterday so far this morning, making a small gain to start the day. According to data released this morning, Retail Sales numbers in Canada were stronger than expected in July. Overall prices were up 0.9%, beating the expected 0.6% hike. Core Sales, which strips out automotive sales, were up 0.4% which was also better than the expected 0.3%.
Expected Ranges
- EUR/USD: 1.1076 - 1.1177 ▲
- GBP/USD: 1.3221 - 1.3338 ▲
- AUD/USD: 0.6789 - 0.6827 ▼
- USD/CAD: 1.3547 - 1.3635 ▼