Home Daily Commentaries DXY trades flat as markets await Wednesday’s inflation numbers

DXY trades flat as markets await Wednesday’s inflation numbers

Melanie Scott
Written by
Melanie Scott

Melanie Scott

OFXpert

Fascinated by the mechanisms that shape financial markets and their impact on currencies, Melanie is passionate about understanding how different factors shape market movements.

| Monday 8 April, 2024

Daily Currency Update

The US Dollar Index (DXY) traded fairly flat this morning, only down around 0.07% to trade near 104.210. While there are no significant data releases expected today, markets will await March’s Consumer Price Index (CPI) data release on Wednesday. The CPI numbers are expected to show inflation rising 0.3%. Market participants are now expecting the Federal Reserve to cut rates twice this year after last week’s mixed data which showed a slowdown in services growth but unexpected strength in jobs data.

Key Movers

In Eurozone news, German industrial production month-over-month was released at 2.1%, well above the forecasted 0.6% and previous 1.3%. The German trade balance was down to 21.4 billion, below the forecasted 25.1 billion, and the previous 27.6 billion levels. The European Sentix Investor Confidence survey came in at -5.9, better than the expected -8.3 reading, and the previous -10.5 level. The euro continued to hold steady with market attention on the European Central Bank’s (ECB) interest rate decision set for Thursday.

The Canadian dollar saw little movement so far this morning with the USD/CAD pair trading in the 1.35811 range, down about 0.05%. While there will be no notable data released today for the Canadian markets, the Bank of Canada (BoC) is set to release their interest rate decision on Wednesday. Markets seem to be uncertain on the outcome of Wednesday’s decision but most participant expect a cut coming soon. In oil news, West Texas Intermediate (WTI) crude oil was down around 0.78% this morning to trade in the 85.89 range.

Expected Ranges

  • EUR/USD: 1.08209 - 1.08542 ▲
  • GBP/USD: 1.26134 - 1.26515 ▲
  • AUD/USD: 0.65593 - 0.66099 ▲
  • USD/CAD: 1.35693 - 1.36166 ▼

Written by

Melanie Scott

OFXpert

Fascinated by the mechanisms that shape financial markets and their impact on currencies, Melanie is passionate about understanding how different factors shape market movements, and deciphering what these fluctuations signify for different currencies. As a Corporate Client Associate at OFX, she works closely with businesses across North America, offering them insights into foreign exchange strategies aimed at mitigating currency risks.