DXY holds steady amid lower-than-expected Economic Optimism data
Daily Currency Update
The US Dollar Index (DXY) was largely unchanged so far today with a slight 0.03% increase to trade near 105.09 this morning. The DXY seemed to remain stable with the only notable data release today coming in the form of an Economic Optimism survey from RealClearMetrics (RCM) and TechnoMetrica Institute of Policy and Politics (TIPP). The Economic Optimism index surveys consumers, asking them to rate the relative level of economic conditions. The results came in lower than expected at 41.8 versus 44.1. While this data did not have a large impact on the US dollar, it showed some depleting confidence in economic health in the US. The USD was up slightly versus the CAD, GBP, and AUD this morning.Key Movers
In the Eurozone, the French Trade Balance came in lower than expected at -5.5 billion versus the expected -5 billion. Despite this data, the EUR was up slightly against the GBP, CAD, and USD so far this morning.The GBP Construction Purchasing Manager’s Index (PMI), which asks construction purchasing managers to rate the relative level of business conditions, was released with higher-than-expected numbers at 53 versus the expected 50.4. These higher numbers signaled growth in the construction sector and could help increase the strength of the GBP.
Last night the Reserve Bank of Australia (RBA) decided to hold rates at 4.35%. This decision came shortly after the AUD hit USD $0.66, a significant threshold for the pair. The AUD/USD pair fell after the announcement but seemed to be climbing back to the 0.66192 range this morning.
The Canadian dollar dipped slightly this morning against most major currencies as oil fell. West Texas Intermediate (WTI) oil was down around 0.7% to the 77.93 level this morning. Oil looked to have affected the Loonie as it struggled against the USD, EUR, GBP, and AUD so far today despite positive Ivey Purchasing Manager’s Index (PMI) data. Ivey PMI numbers came in higher than expected at 63 versus 58.1.
Expected Ranges
- EUR/USD: 1.0754 - 1.0787 ▲
- GBP/USD: 1.2529 - 1.2570 ▼
- AUD/USD: 0.6586 - 0.6643 ▼
- USD/CAD: 1.3658 - 1.3692 ▲