USD demand falls after CPI data release
Daily Currency Update
Demand for the US dollar fell from 5-week highs following the release of the latest US Consumer Price Index (CPI) data. Philadelphia Federal Reserve President Patrick Harker noted in his speech that we should expect to see a volatile market following the release of the CPI numbers this week however he also noted that the Fed may be at a point to hold rates steady through the remainder of this year. The minor reacceleration in inflation supports this idea and markets are doubtful of any rate hikes soon as the Fed waits for signs of an improving economy.Key Movers
The EUR/USD pair faded to 1.1060 with the increase in the pair’s worth being largely attributed to the consistent positive performance of 10-year German bond yields.The GBP/USD pair moved upwards as the market attitude turned positive. The pair remains well-supported at this point as stakeholders hope the British economy can avoid a recession amid easing inflationary weights and decreasing consumer spending.
USD/CAD remained steady, as demand for the Canadian dollar made slight gains against the USD. Building permits rose in Canada from July by 6.1% month-over-month which was a surprising increase as markets expected a 3.5% decline. West Texas Intermediate (WTI) crude oil prices have increased above the $84 a barrel mark for the first time since November 2022.
Expected Ranges
- EUR/USD: 1.0968 - 1.106 ▲
- GBP/USD: 1.2711 - 12814 ▲
- AUD/USD: 0.6528 - 0.6611 ▲
- USD/CAD: 1.3377 - 1.3427 ▼