USD heads to high ground of range ahead of FOMC next week
Friday 9 December, 2022
Daily Currency UpdateThe US dollar is starting Friday making mild gains after the Producer Price Index (PPIA) data for November showed that producers costs were up slightly more than expected across the board. Headline PPI was up 0.3% month over month, high than the 0.2% expected by economists. The core data which strips out more volatile items was up 0.4%, again more than expected. Later this morning we have the Michigan Consumer Sentiment data to end the week. Eyes will then set squarely on next Wednesday’s Fed Interest rate announcement to see how aggressive the FOMC will be on inflation to end the year.
Key MoversThe Euro had made some ground against the USD in the overnight session as some ECB members continue to hint at further rate hikes in the zone to get their 10%+ inflation under control. Their next decision comes in on Thursday, one day after the US Federal Reserve announcement. The Canadian dollar is down against its USD counterpart as equities markets give up ground made yesterday, and oil falls off. The WTI Price in the US is down to $72 a barrel this morning but the Western Canadian Select price has narrowed by close to $2.50 a barrel as TC Energy had to shut down the Keystone Pipeline yesterday. They discovered a leak in the line that had spilled out about 14000 barrels before they got it closed off.
- EUR/USD: 1.0520 - 1.0584 ▼
- GBP/USD: 1.2214 - 1.2291 ▲
- AUD/USD: 0.6755 - 0.6799 ▲
- USD/CAD: 1.3566 - 1.3673 ▲