Home Daily Commentaries USD demand steady

USD demand steady

Daily Currency Update

USD - United States DollarDemand for the safe-haven US dollar nudged up this morning due to growing concern by some investors that the Delta variant could slow down reopening plans across many regions worldwide. The US Dollar Index was up 0.14%, trading at 92.26 at the time of writing.It’s a quiet start to the week on the economic data front, but market participants will be closely paying attention to tomorrow’s inflation data and testimony from US Federal Reserve chair Jerome Powell on Wednesday and Thursday.

Key Movers

uropean Central Bank president Christine Lagarde stated that the policy meeting July 22nd might shed some light on stimulus guidance and additional measures for monetary support in the year to come. The euro remained largely unchanged after this, and the EURUSD pair found some support around the 1.1800 handle.Demand for the pound edged slightly lower ahead of today’s announcement by the UK prime minister on reopening plans. Boris Johnson is set to confirm whether all remaining restrictions will be lifted next week. The pound may not be impacted by this news, as it is thought to be priced into the market already. The pound could be sensitive to unemployment and inflation data releases later in the week. GBPUSD was down 0.11% to 1.3885 at the time of writing. The Australian dollar also moved lower against USD after a weekend focused on news of fresh lockdowns amid increasing COVID-19 cases. AUDUSD was down 0.06%, trading at 0.7480 at the time of writing.

Expected Ranges

  • EUR/USD: 1.1839 - 1.188 ▼
  • GBP/USD: 1.3843 - 1.3909 ▼
  • AUD/USD: 0.745 - 0.7492 ▲
  • USD/CAD: 1.2447 - 1.2512 ▲