DXY has the potential to end the week on a positive note

Key Movers

Demand for the euro continued to push EURUSD down toward the level of 1.0900. Investors anticipated the European Central Bank (ECB) initiating rate reductions in the first half of 2024.

GBPUSD declined in early morning trading. Traders expressed confidence in the US dollar, despite indications that the US Federal Reserve (Fed) might be approaching the zenith of its tightening cycle. Consequently, the currency pair traded at 1.2649, having reached a peak of 1.2710, reflecting a decrease of 0.35%.

The Australian Dollar (AUD) rebounded from recent losses, notwithstanding discouraging economic data from Australia on Thursday. AUDUSD retracted from its nearly four-month high at 0.6676 in the preceding session, influenced by the recovering US dollar.

Growth data for Canada disappointed this morning and decreased demand for the Loonie. Canadian GBP contracted 1.1% annually and was lower than the 0.2% expansion that was expected. The data underscored the economy’s heightened vulnerability to the central bank’s aggressive tightening. Consequently, there’s anticipation in the markets that the Bank of Canada will initiate interest rate cuts in the first half of 2024. Nonetheless, the potential reduction in crude oil by the OPEC+ nations at the beginning of the next year has curbed the Canadian Dollar’s decline for now.