USD remains steady ahead of Wednesday’s rate decision
Daily Currency Update
The US dollar nudged slightly higher this morning ahead of the Federal Reserve’s first rate decision of the year on Wednesday. According to the CME’s FedWatch took, markets were predicting a 96.9% chance that the Fed will hold rates. The Federal Reserve Bank of Dallas’s Manufacturing Index was revised to -1.04 from the previous revised number of -9.3. This survey interviews firms regarding output, employment, orders, prices, and more to give an assessment of the state’s factory activity. This increase showed a bump in manufacturing activity in Texas. The US Dollar Index (DXY) traded up 0.32% from Friday’s close.Key Movers
The Bank of England (BoE) is set to announce their rate decision on Thursday. Markets showed around a 50% chance that the first BoE rate cut will come in May. The central bank has held its key Bank Rate at 5.25% since August.In New Zealand news, the balance of trade was released at -0.323 billion. This was a jump from the -1.234 billion reported previously. This shows that New Zealand is making up ground with economic activity and trade orders going out.
The Canadian dollar held its ground in the low 1.34 area against the USD. The Loonie may continue to hold this steady position until the Federal Reserve’s rate decision on Wednesday. In oil news, West Texas Intermediate (WTI) crude oil was down 1.63% this morning to 76.87 a barrel.
Expected Ranges
- EUR/USD: 1.07983 - 1.0850 ▼
- GBP/USD: 1.26620 - 1.27189 ▼
- AUD/USD: 0.65695 - 0.66060 ▲
- USD/CAD: 1.34255 - 1.34652 ▲