Home Daily Commentaries USD plummets to 2-month lows against major currencies

USD plummets to 2-month lows against major currencies

Daily Currency Update

The US dollar has reached a two-month low compared to other major currencies as the market awaited a US inflation report later today with expectations for core consumer prices to have risen 5% on an annual basis in June.
Meanwhile, GBP/USD rose to a 15-month high due to the anticipation that the Bank of England (BoE) will continue increasing interest rates.
Data out on Tuesday showed that a key measure of British wages rose at the joint fastest pace on record as basic earnings in the three months to May surged 7.3%, higher than expectations of a 7.1% rise. Traders are now pricing another potential 50 basis point hike by the BoE at its next meeting.

Key Movers

After the release of the weak German ZEW business sentiment index on Tuesday, the euro initially declined. However, these losses turned out to be temporary as the weakness of the US dollar outweighed any concerns regarding the eurozone economy. As a result, the EUR/USD pair rose to a two-month high.

Expected Ranges

  • GBP/USD: 1.2905 - 1.2995 ▲
  • GBP/EUR: 1.1715 - 1.1795 ▲
  • EUR/USD: 1.1005 - 1.1085 ▲