DXY finds some strength amid disappointing data releases
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Daily Currency Update
The US Dollar Index (DXY) gained strength this morning to rise by around 0.20% to trade near the 105.47 level. This jump came despite several disappointing data releases. Weekly Unemployment Claims, which tracks how many new people file for unemployment benefits, came in a little higher than expected at 238,000 versus the expected 235,000. Building Permits data, which measures the current demand in the real estate market and estimates the future performance of the construction industry, was released at lower-than-expected levels of 1.39 million versus the anticipated 1.45 million.Key Movers
In Eurozone news, the German Producer Price Index (PPI) month-over-month data was released, which is the change in the price of goods sold by manufacturers. It came in lower than expected at 0% versus the expected 0.1%. The EUR dipped against both the USD and the CAD so far today.The Swiss National Bank (SNB) released its decision to lower its rate interest rate to 1.25% from 1.50%. Markets were surprised as the central bank was expected to keep the rate at 1.50%. As a result, the CHF dipped this morning against the USD before regaining some ground. The pair traded at the 1.231 level this morning.
The GBP was down so far today against the EUR, USD, and CAD. The GBP Monetary Policy Committee (MPC) also released its rate decision which decided to keep it the same rate of 5.25%, as expected.
The Canadian dollar was up this morning against the USD, EUR, GBP, and AUD. While there wasn’t much data slated for release today in Canada, markets are looking ahead to the Retail Sales monthly data which is set to be released tomorrow and could cause movement in the Loonie. West Texas Intermediate (WTI) crude oil was up so far today by around 0.85% to the 82.26 level.
Expected Ranges
- EUR/USD: 1.0712 - 1.0748 ▼
- GBP/USD: 1.2674 - 1.2722 ▼
- AUD/USD: 0.6658 - 0.6679 ▼
- USD/CAD: 1.3689 - 1.3720 ▼