Daily Currency Update
USD - United States DollarThe US dollar continued to underperform against other major currencies as investors await minutes from the US Federal Reserve’s most recent meeting. USDCAD hovered at a six-year low, while EURUSD and GBPUSD are at three-month highs. The dollar may get some respite if the minutes show that the Fed could respond sooner rather than later to rising price pressures.Data released last week showed the fastest increase in US consumer prices in 12 years. Analysts expect the Fed to confirm their dovish stance, but any hints otherwise could cause a ripple in the market and potentially lift demand for the dollar. The US Dollar Index was up modestly this morning, trading at 89.89.
Key Movers
There’s renewed demand for the euro and the pound. EURUSD is slightly down today, trading at 1.2216 this morning, after touching a high of 1.2230 yesterday. GBPUSD is also down 0.2% at 1.4155, pulling back from yesterday’s 1.42 mark. With the UK continuing its push to vaccinate the population by July and Europe’s own immunization program gathering momentum, the scope for easing restriction and economic recovery should support both currencies through the medium to long term.The Australian dollar advanced through trade yesterday, buoyed by broad based USD softness and sustained strength across key commodities prices. AUDUSD is down 0.6% this morning, trading at 0.7739 at the time of writing. Attentions today turn to domestic wage price data. While we expect little in the way of wage growth, a surprise to the upside could help the AUD climb above 0.78.The Canadian dollar retreated slightly from its six-year high against the US dollar. But its strength continues to be supported by a few factors: rising demand for Canadian exports from the broader global economy, strong commodity prices and a rapidly improving vaccination campaign.
Expected Ranges
- EUR/USD: 1.219 - 1.224 ▼
- GBP/USD: 1.414 - 1.421 ▼
- AUD/USD: 0.773 - 0.780 ▼
- USD/CAD: 1.204 - 1.211 ▲