USD building on Friday’s gains after strong jobs data
Daily Currency Update
Demand for the US dollar continued after a very strong end to last week. The US Dollar Index (DXY) has gained 0.53% from Friday's close and reached 104.532 at the time of writing. The ISM Services PMI has exceeded expectations, hitting 53.4, marking the 13th consecutive month of growth and nearing a one-year high. Additionally, the S&P Global Composite PMI Final stands at 52, with the S&P Global Services PMI Final recording 52.5, surpassing both the forecast and previous figures. Federal Reserve Chair Jerome Powell's recent pre-recorded interview has played a key role in shaping market sentiment, highlighting reservations about a March rate cut.Key Movers
The USD and its counterparts have seen notable shifts. Germany, a key player in the Eurozone, reported a robust trade balance of 22.2 B, surpassing the forecast of 19.0 billion and the previous figure of 20.7 billion.However, concerns arise from the German Final Services PMI, which stands at 47.7, below both the forecasted 47.6 and the previous 47.6, marking the fourth consecutive month of declining business activity in the German service sector. The Euro area, on the other hand, shows a mixed picture with the Sentix Investor Confidence at -12.9, outperforming the expected -15 and the previous -15.8, indicating a relatively more positive sentiment.
Regarding production, the Euro area's PPI month-over-month remains at -0.8%, in line with predictions and consistent with the previous -0.3%. Meanwhile, the GBP Final Services PMI demonstrates strength at 54.3, exceeding the predicted 53.8 and the previous 53.8.
In the broader context, oil prices have experienced a decline, down by -0.99% to 71.60, adding an additional layer of complexity to the global currency landscape.
Expected Ranges
- EUR/USD: 1.07231 - 1.07865 ▼
- GBP/USD: 1.25184 - 1.26337 ▼
- AUD/USD: 0.64686 - 0.65202 ▼
- USD/CAD: 1.34563 - 1.35438 ▲