Home Daily Commentaries DXY increases on positive data releases

DXY increases on positive data releases

Daily Currency Update

The US dollar index (DXY) increased this morning, reaching 106.42. Month-over-month retail sales data was released at 0.7%, much stronger than the expected value causing the USD to jump. Core retail sales data month-over-month, which does not include auto sales, was at 0.6%. This was also higher than expected, causing a further positive lift for the USD. Month-over-month industrial production was 0.3% versus the expected 0% change. All three positive data releases drove the DXY to the current level.

Key Movers

The Israel-Hamas conflict has caused Israeli New Shekel, or ILS, to spiral to an 8-year low. This severe dip rises amid fears of further economic effects as a result of continued conflict.

The Zentrum für Europäische Wirtschaftsforschung (ZEW) Indicator of Economic Sentiment, a survey of about 300 German institutional investors and analysts for Germany, recorded an increase. This is good news for the EUR and the EUR/USD pair rate was up.

Average earnings including bonuses were released from the UK at 8.1%. This is lower than expected, which seemingly contributed to the GBP/USD rate decrease as the USD rose.

Expected Ranges

  • EUR/USD: 1.0536 - 1.0581 ▲
  • GBP/USD: 1.2135 - 1.2217 ▼
  • AUD/USD: 0.6336 - 0.6369 ▲
  • USD/CAD: 1.3602 - 1.3703 ▲