Home Daily Commentaries USD flat ahead of consumer confidence data release

USD flat ahead of consumer confidence data release

Daily Currency Update

Positive movement in overnight equities markets had yet to enter the North American outlook this morning. Markets in the UK, France, and Germany were all in the green as they neared the close for the week. USD held its position in pre-market trading in North America this morning. Data announcements still to come are the Industrial Production and Capacity Utilization numbers for August which are expected to be in line with the July releases. We will then see the University of Michigan Consumer Confidence Survey for September which is expected to show continued confidence in the US economy with a reading of 69.1.

Key Movers

In European markets, the EUR/USD pair hit a 6-month low during yesterday’s trading session, falling to an intraday low of $1.0632. This followed the European Central Bank’s (ECB) 10th consecutive interest rate hike. Meanwhile, inflation in France came in at 4.9% up year-over-year, sparking speculation that the ECB may have to re-examine its rate strategy.

The Canadian dollar took a hit this morning after a data release showed that home sales in Canada dropped by 4.1% in August. Listing and average price were both up, but overall transactions were down from July. The impact of these numbers shows the Loonie losing ground to its US counterpart heading into the end of the week. Oil is holding onto the gains it made this week, with West Texas Intermediate (WTI) remaining at the $90 per barrel mark.

Expected Ranges

  • EUR/USD: 1.0633 - 1.0736 ▲
  • GBP/USD: 1.2329 - 1.2445 ▼
  • AUD/USD: 0.6431 - 0.6527 ▼
  • USD/CAD: 1.3494 - -0.6422 ▲