Home Daily Commentaries Dollar weakens amid mixed US data

Dollar weakens amid mixed US data

Wednesday 24 August, 2022

Daily Currency Update

The US dollar erased its early-morning gains on Wednesday following the release of mixed US data. New orders for US durable goods stayed unchanged in July, below market expectations for an increase of 0.6%. The market is anticipating a speech by Federal Reserve Chair Jerome Powell on Friday that could signal whether the central bank will remain on its aggressive plan to raise rates in a bid to curb inflation or start to pivot from its monetary policy. The US Dollar Index was trading around 108.52 at the time of writing.

Key Movers

The euro rebounded against a broadly softer US dollar on Wednesday. Eurozone PMI data yesterday confirmed market concerns about the damaging combination of high energy prices and slowing global demand. EURUSD was trading at 0.99713 at the time of writing. GBPUSD was down this morning following mixed UK PMI data yesterday. The manufacturing sector fell to 46 – considered a contraction – in July due to slower demand. However the services sector beat expectations, expanding to 52.5 in July, showing that hiring demand is still strong. GBPUSD was around 1.1799 at the time of writing.

Expected Ranges

  • EUR/USD: 0.9915 - 0.9997 ▲
  • GBP/USD: 1.1761 - 1.1853 ▼
  • AUD/USD: 0.6882 - 0.6944 ▼
  • USD/CAD: 1.2947 - 1.3012 ▲