USD dips amid a negative sentiment release and strong EUR
Daily Currency Update
The US Dollar Index (DXY) was down this morning as business sentiment in the US dipped. The monthly services Purchasing Manager’s Index (PMI), which measures the responses of purchasing managers in the services sector, came in at 52.6. This was lower than both the 53.4 last month and the predicted 53.0. The greenback was also down against the euro as several data points released overnight in the European markets showed stronger Gross Domestic Product (GDP) growth and business sentiment.Key Movers
The Euro and GBP were both up against the USD this morning as data released in both jurisdictions pointed towards stronger-than-expected growth. For the Eurozone, the highlight was the Italian economy growing 0.6% in the last quarter. This came in better than the 0.5% growth from last month. In the UK, it was a 14% jump in auto sales that helped the outlook of the GBP.The Canadian dollar was relatively even this morning, as the Canadian stock markets outperformed their American counterparts. The commodity-linked Loonie was at risk of falling as oil prices continued to drop. Oil retracted this morning after seeing $80+ on West Texas Intermediate (WTI) oil prices overnight. After touching around $80 a barrel, oil fell back to the mid-$78 range as analysts eye a struggling Chinese economy as a barrier to oil price growth.
Expected Ranges
- EUR/USD: 1.0844 - 1.0968 ▲
- GBP/USD: 1.2673 - 1.2782 ▲
- AUD/USD: 0.6479 - 0.65550 ▲
- USD/CAD: 1.3556 - 1.3665 ▼