USD showing mixed signals amid PCE inflation release
Daily Currency Update
The US dollar is mixed at the end of this week, being down against the Euro but holding onto gains against many other major currencies. The Personal Consumption Expenditure (PCE) index inflation released inflation data today, is up 3.8% year-over-year, a drop from last month’s 4.1% increase. The core inflation also came in lower at 4.6%, better than the expected 4.7%. Although this is lower than expected, it is not likely to change the direction of the Federal Reserve regarding upcoming interest rate hikes. In additional data today, the University of Michigan’s consumer confidence data is set to be released. Consumer confidence is expected to jump to 63.9 on the index from 59.2 last month, showing continued confidence in the US economy.Key Movers
The Euro is making gains as inflation releases this morning showed that inflation in the Eurozone is up slightly with core inflation coming in at 5.4%, up from 5.3% last month. This likely reinforces further rate hikes from the European Central Bank (ECB) which is helping the Euro out.The Canadian dollar is down slightly to start the day despite oil holding steady around the $70 a barrel benchmark price while the equities market points towards a high open. Canada’s Gross Domestic Product showed it was unchanged month-over-month in April, but early predictions for May show a 0.4% hike.
Expected Ranges
- EUR/USD: 1.0839 - 1.0920 ▲
- GBP/USD: 1.2596 - 1.2695 ▲
- AUD/USD: 0.6600 - 0.6705 ▲
- USD/CAD: 1.3241 - 1.3328 ▲