DXY trades mostly flat ahead of Fed’s rate decision tomorrow
Daily Currency Update
The US Dollar Index (DXY) continued to trade laterally this morning around 104.03, a slight 0.06% decrease from yesterday. Core Consumer Price Index (CPI) data, which excludes food and energy prices, came in near expectations. Monthly CPI data was slightly higher than expected at 0.1% versus 0%. The US Federal Reserve is still expected to hold interest rates at 5.5% during tomorrow’s meeting. The EUR was slightly higher versus the USD today, but still under 1.08 at the time of writing. Demand for USD remained up against the GBP, AUD, and CAD.Key Movers
The euro bounced back this morning against the GBP, USD, and CAD on positive German data. The EUR/USD pair traded around 1.0783 this morning. The Zentrum für Europäische Wirtschaftsforschung (ZEW) Economic Sentiment and German ZEW Economic Sentiment data, which surveyed institutional investors and analysts in Germany, came back higher than expected.Jobless claims in the UK came in better than expected. The UK Claimant Count Change data, which measures jobless claims in the UK, came in at 16,000 versus 20,300 expected claims. The UK Average Earning Index was also released lower than anticipated at 7.2% versus the anticipated 7.7% and the previous level of 8%. With better job numbers but worsening earnings numbers the effects of this data balanced out for the GBP to trade mostly flat.
The Loonie was down this morning against most major currencies including the USD, GBP, EUR, and AUD. This was partially due to falling oil prices. West Texas Intermediate (WTI) crude oil was down this morning by around 3.31% to the USD$69.16 per barrel levels.
Expected Ranges
- EUR/USD: 1.0764 - 1.0827 ▲
- GBP/USD: 1.2517 - 1.2609 ▼
- AUD/USD: 0.6542 - 0.6612 ▼
- USD/CAD: 1.3544 - 1.3617 ▲