USD makes gains to end the week
Daily Currency Update
The US Dollar Index (DXY) was up slightly for the second day in a row. Demand for the dollar increased yesterday after comments from a Federal Reserve member caused markets to doubt rate cuts. San Francisco Federal Reserve President Mary Daly said that the central bank will not quickly move to reduce borrowing costs. She shined a positive light on US treasury bonds. Those are likely to remain higher for longer. There is no significant US data today but there is a speech from Fed Chair Jerome Powell scheduled for later today.Key Movers
The euro continued its slide against other major currencies today after weaker than expected inflation numbers. The cooler than expected 2.4% inflation data released yesterday caused markets to expect the European Central Bank (ECB) to cut rates sooner than expected.Oil was down this morning as markets struggled with the “name your own production cut” strategy taken by the Organization of the Petroleum Exporting Countries (OPEC). Rather than committing to structured cuts, OPEC has allowed member states to set their own production cuts that will then be added into an overall total. Markets were wary of the impact this may have in cutting production in order to keep prices at a high level.
The Canadian dollar made further gains to end the week despite the decline in oil prices. Canadian jobs data released this morning surprised markets. The economy added 25,000 jobs in November and beat the expected 15,000. Other positive takes from this release included full-time positions, making up 59,000 of those jobs while 34,000 part-time and casual positions were shed.
Expected Ranges
- EUR/USD: 1.0855 - 1.0951 ▼
- GBP/USD: 1.2613 - 1.2726 ▼
- AUD/USD: 0.6583 - 0.6643 ▲
- USD/CAD: 1.3517 - 1.3625 ▼