Home Daily Commentaries USD ending week down as oil makes gains

USD ending week down as oil makes gains

Daily Currency Update

The US dollar Index (DXY) was down -0.15% heading into the North American session as West Texas Intermediate (WTI) oil jumped back over $87 a barrel. Equities pointed towards a slightly lower open, but commodities seemed to be picking up the slack for investors wanting to rake in some risk. Further support could come this morning with the release of the monthly rig count numbers showing how many rigs are actively drilling in the US.

Key Movers

In Eurozone news, new inflation data out of Germany came in lower than expected at 6.1% versus the anticipated 6.2%. This is significant as Germany is the biggest economy in Europe, so Germany’s economic data has a larger impact on Eurozone movement than similar data from other countries.

Oil is headed towards a second straight week of gains as WTI prices climbed back over $87 a barrel this morning. Continued need and ongoing production cuts from the Organization of the Petroleum Exporting Countries (OPEC+) nations are keeping prices elevated.

The Loonie is rebounding this morning after the jobs release for August surprised to the upside. Employers added 39,000 jobs to the economy, better than the expected 15,000. The highlight of this release was that the majority of these roles were higher paying, more stable full-time positions, which made up 32,200 of the overall gains. Unemployment also stayed at 5.5% rather than going up to the expected 5.6%.

Expected Ranges

  • EUR/USD: 1.0692 - 1.0772 ▲
  • GBP/USD: 1.2456 - 1.2590 ▲
  • AUD/USD: 0.6368 - 0.6481 ▲
  • USD/CAD: 1.3613 - 1.3741 ▼