US dollar recovers following 5 week losing streak
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Daily Currency Update
The US dollar is trading near a one-week high against major currencies and is poised to break a five-week losing streak. This shift in the currency market comes after strong economic data reduced expectations for aggressive interest rate cuts by the Federal Reserve, boosting demand for the dollar.US data revealed that the gross domestic product (GDP) grew at an annualized rate of 3.0% in the second quarter, an upward revision from the previously reported 2.8%. This stronger-than-expected economic growth could boost the US dollar in the currency market, as it reinforces expectations for tighter monetary policy from the Federal Reserve.
Key Movers
The euro has limited downside potential against the US dollar, even if upcoming eurozone inflation data strengthens expectations for ECB rate cuts. A higher-than-expected CPI could push expectations to a full 75 basis point reduction over the next three meetings, which could create volatility in the currency market and influence the euro's movement against the dollar.Expected Ranges
- GBP/USD: 1.3165 - 1.3245 ▲
- GBP/EUR: 1.1875 - 1.1935 ▲
- GBP/AUD: 1.9335 - 1.9395 ▲
- EUR/USD: 1.1065 - 1.1155 ▲