Home Daily Commentaries US dollar strengthened on the foot of economic data releases.

US dollar strengthened on the foot of economic data releases.

Friday 29 July, 2022

Daily Currency Update

US personal income and personal spending came in stronger than expected, 0.6% vs 0.5% and 1.1% vs 1%, respectively. For now, many analysts think that for the USD to weaken, the Fed has to show more concern about economic growth than inflation.

Key Movers

The Friday session in Asia started strong thanks to a favorable risk backdrop and a weaker US dollar in the overnight session, along with S&P 500 futures increasing. The Federal Reserve Bank of Atlanta's GDPNow Index suggests that GDP will expand by 2.1% in the third quarter. Economic growth in Canada came in at 5.6%, which was slightly more robust than the expected number of 5.4%. Initially, the Loonie crosses versus G10 currencies rallied. For example, the USDCAD fell towards 1.2808 two hours after the GDP release.

Expected Ranges

  • EUR/USD: 1.0148 - 1.0248 ▲
  • GBP/USD: 1.2070 - 1.2236 ▼
  • AUD/USD: 0.6920 - 0.7027 ▼
  • USD/CAD: 1.2791 - 1.2852 ▼