US existing home sales drop to a 6-month low
Daily Currency Update
The US dollar index (DXY) experienced a modest rise today, currently sitting at 103.58. US Existing Home Sales fell 2.2% in July, a 6-month low. Existing Home Sales are now down 16.6% year-over-year as well. This has largely been driven by the rapid rise in mortgage rates as Americans are keeping their homes locked in low-rate mortgages. In additional US data releases this week, both the Manufacturing and Services Purchasing Manager’s Indexes (PMI) will be released tomorrow.Key Movers
The EUR/USD pair was down, sitting at 1.0840 at the time of writing. The Eurozone’s current account surplus surged to 35.8 billion from 7.9 billion last month. This is a result of higher goods exports and lower imports.The GBP was down against the USD at 1.2727 currently. Net borrowing in the UK was reported at 4.3 billion pounds, less than the expected 5 billion pounds. This is showing signs of weakness in the British economy.
In Swiss news, the Switzerland trade balance was currently sitting at 3.13 billion CHF, well below last month’s 4.82 billion level. This is largely due to exports dropping 16.7% and imports slipping 12.5% last month.
The USD/CAD pair extended its upward trend today as the pair has gained for 6 consecutive days now and currently hovers above the 1.35 range. Canadian retail sales figures set to be released tomorrow will provide more guidance as to where the pair will move from here.
Expected Ranges
- EUR/USD: 1.08516 - 1.09304 ▼
- GBP/USD: 1.2722 - 1.128003 ▼
- AUD/USD: 0.64035 - 0.64578 ▲
- USD/CAD: 1.35130 - 1.35542 ▲