USD up as Fed comments turn hawkish
Friday 17 February, 2023
Daily Currency UpdateThe US Dollar is increasing due to several speeches yesterday from Federal Governors. The common messaging is that this week’s Consumer Price Index data shows that there is more work to be done to get inflation under control. This is leading markets to anticipate up to 3 more hikes from the Federal Reserve rather than the 1 or 2 that had been forecasted after their last rate announcement. Further helping the greenback is a slide in oil prices and the lower open on equities markets, which is taking away from the strong start markets have had in 2023.
Key MoversThe pound has lost some ground to the USD after retail sales in the UK showed a year-over-year pullback of -5.1%. The GBP is joining most major currencies in losing out to the USD, the world’s biggest currency, which has flexed its muscle in the last few days. The Canadian dollar is down once more at the start of the day as West Texas Intermediate oil fell into the $75 a barrel range. The strength in equities markets is dwindling with the money going into US bonds, all things that are hurting the CAD. This is in line with all other major currencies that are losing ground to the surging US dollar.
- EUR/USD: 1.0618 - 1.0696 ▼
- GBP/USD: 1.1919 - 1.2026 ▼
- AUD/USD: 0.6813 - 0.6902 ▼
- USD/CAD: 1.3425 - 1.3534 ▲