Home Daily Commentaries USD set for second week of gains

USD set for second week of gains

Daily Currency Update

The value of the US dollar has increased for two consecutive weeks, driven by a stronger-than-expected US economy. This unexpected growth has caused investors and policymakers to reevaluate their predictions for Federal Reserve interest rate cuts this year. Just a couple of weeks ago, the market was expecting a rate cut by the Federal Reserve to begin in June. However, the Fed may now consider postponing any such actions until September.

Key Movers

The Governor of the Bank of England, Andrew Bailey, has suggested that the UK is likely to see a decrease in interest rates, following the latest official data indicating a continuous slowdown in economic price growth. Bailey made these comments just before the Office for National Statistics (ONS) published figures, which revealed that inflation, as measured by the Consumer Prices Index (CPI), had fallen to 3.2% over the twelve months ending in March, marking the lowest rate in two and a half years.

Expected Ranges

  • GBP/USD: 1.2405 - 1.2475 ▼
  • GBP/EUR: 1.1655 - 1.1705 ▲
  • EUR/USD: 1.0615 - 1.0705 ▼

Written by

See Wah Li

OFXpert

See Wah is passionate about supporting positive transformations when it comes to managing foreign exchange. As a Senior Currency Consultant at OFX, his goal is to help businesses make informed decisions, alleviate risks, and enhance their currency strategies for success. With over 6 years of experience in the foreign exchange market, See Wah’s strength lies in developing effective solutions to help navigate the complexities of currency fluctuations and mitigate their impacts on business profitability.