Market awaits key inflation data release tomorrow
Daily Currency Update
The US Dollar Index (DXY) remained mostly flat this morning amid few data releases out of the US. The DXY traded up 0.10% at the time of writing. Traders anxiously await tomorrow morning’s release of Consumer Price Index (CPI) data that should provide some clarity on which direction interest rates may move at the Federal Reserve’s meeting in December, and consequently, which direction the USD may move.Key Movers
European Central Bank ECB Vice President Luis de Guindos said today that the “central bank will not prejudge further movements in the policy rate.” But will instead “ensure policy remains sufficiently restrictive for as long as necessary.”New bank lending data from China exceeded expectations at 738.4 billion yuan versus the forecasted 665 billion yuan. Beijing has recently been ramping up several different measures to support the Chinese economy after the COVID crisis.
India’s headline inflation rate fell to 4.87%. This was within expectations but below the September inflation level of 5.02%.
Expected Ranges
- EUR/USD: 1.0665 - 1.0701 ▼
- GBP/USD: 1.2217 - 1.226 ▲
- AUD/USD: 0.6352 - 0.6385 ▲
- USD/CAD: 1.379 - 1.3832 ▲