Home Daily Commentaries DXY remains mostly flat amid strong US data releases

DXY remains mostly flat amid strong US data releases

Justin Kapadia
Written by
Justin Kapadia

Justin Kapadia

OFXpert

With a keen interest in macroeconomics, Justin loves diving into the complexities of foreign exchange markets and is passionate about developing effective strategies to help protect businesses.

| Tuesday 30 January, 2024

Daily Currency Update

The US Dollar Index (DXY) remained mostly flat amid strong data from the US this morning. The January US Consumer Confidence Index was released this morning at 114.8, which was up from 108 in December. This is the highest reading since December 2021, implying that the average consumer’s confidence in the US market is improving significantly. The job openings and labor turnover survey (JOLTS) for December was released at 9.026 million versus the expected 8.75 million. This is the highest level in 3 months which suggest that the labor market maintained strength. All eyes will look to the Federal Reserve’s rate decision tomorrow when the market is expecting a hold on interest rates.

Key Movers

The Eurozone economy reported 0% quarter-over-quarter Gross Domestic Product (GDP) growth, and 0.1% growth year-over-year, narrowly avoiding a recession. In contrast to the US consumer confidence data, the Eurozone consumer confidence index for January came in below its previous month reading at 96.2 versus last month’s 96.4. This showed the Eurozone economy continues to struggle for strong footing. The USD/EUR remained mostly flat this morning.

Mexico reported a 0.1% quarter-over-quarter GDP growth, compared to an anticipated of 0.3% growth. This showed a lagging Mexican economy as the USD/MXN pair held flat today.

The USD/CAD pair was up about 0.15% this morning amid a slow news day for Canada. Oil was up about 0.1% this morning which could provide the CAD with some strength. The Canadian dollar was up around 0.3% against the pound and AUD. The interest rate announcement in the US tomorrow will provide some clarity over the future of the USD/CAD pair which sat at 1.3432 this morning.

Expected Ranges

  • EUR/USD: 1.08120 - 1.08573 ▲
  • GBP/USD: 1.2641 - 1.2721 ▼
  • AUD/USD: 0.65752 - 0.66244 ▼
  • USD/CAD: 1.33993 - 0.34464 ▲

Written by

Justin Kapadia

OFXpert

After graduating with a Bachelor of Business Administration from Schulich School of Business in Toronto, Justin started and managed his own e-commerce business for two years. Justin’s keen interest in macroeconomics, in particular, how global events can impact currency prices led him to take on a role as a Corporate Client Associate at OFX.