Home Daily Commentaries DXY regains strength following the CPI data release

DXY regains strength following the CPI data release

Weston Blystone
Written by
Weston Blystone

Weston Blystone

OFXpert

At OFX, Weston collaborates closely with businesses, guiding them and providing invaluable insights into foreign exchange strategies to mitigate risk effectively.

| Tuesday 12 March, 2024

Daily Currency Update

The US Dollar Index (DXY) was up this morning around 0.25% near 103.13 after the release of the Consumer Price Index (CPI) data. Monthly Core CPI, which shows the change in the price of goods and services purchased, excluding food and energy, came out higher than expected at 0.4% versus the expected 0.3%. Likewise, yearly CPI data came in higher than market anticipations at 3.2% instead of 3.1%. Meanwhile, the monthly CPI came in as expected at 0.4%. After the release of the CPI data, the USD rose against most major currencies, including the EUR, GBP, AUD, and CAD.

Key Movers

In Eurozone news, the German Final CPI month-over-month data was released in line with expectations at 0.4%.

The UK region saw mixed data with the GBP Claimant Count Change and Average Earnings Index releases. The Claimant Count Change, which shows the change in unemployment claims during the previous month, was lower than expected at 16,800 versus the expected 20,300. Meanwhile, the Average Earnings Index, which shows the change in the price of businesses and the government pay for labor, was lower than expected at 5.6% versus 5.7%. This mixed data caused the GBP to dip against the USD by around 0.37% and the CAD by 0.24%. The GBP was also down versus the EUR 0.25%.

The USD/CAD rate rose again to around 1.35, a 0.13% increase for the USD from yesterday. The Loonie was also up versus the weak GBP this morning. The CAD rose around 0.24% against the GBP today. In oil news, West Texas Intermediate (WTI) crude oil was up this morning around 0.38% at 78.23. There are no notable data releases today in the Canadian region.

Expected Ranges

  • EUR/USD: 1.0906 - 1.0945 ▼
  • GBP/USD: 1.2747 - 1.2825 ▼
  • AUD/USD: 0.6586 - 0.6639 ▼
  • USD/CAD: 1.3462 - 1.3525 ▲

Written by

Weston Blystone

OFXpert

Weston is on a mission to help people optimise their foreign exchange transfers. As Corporate Client Associate at OFX, he collaborates closely with businesses, guiding them and providing invaluable insights into foreign exchange strategies to mitigate risk effectively. Always eager to deepen his understanding and share his expertise with others, Weston finds great fulfilment in working with diverse individuals, nurturing their company's growth through tailored solutions.