Little movement for USD ahead of inflation data
Tuesday 8 June, 2021
Daily Currency UpdateUSD - United States DollarThe US dollar edged slightly higher against a basket of currencies as investors waited for inflation data. The Consumer Price Index report, a measure of inflation that the US Federal Reserve pays attention to, is due on Thursday. The US Dollar Index was up 0.11%, trading at 90.05 at the time of writing. After last week’s softer than anticipated payroll print and a sustained correction in US treasury yields, investors will be paying attention to the upcoming consumer price numbers for fresh direction. A higher than expected number could build the case for the possibility of tapering, which would boost demand for USD.
Key MoversGermany’s factory orders missed expectations in April. Some analysts suggest that this indicates the Eurozone economy still had some significant slack. All eyes are on Thursday’s monetary policy meeting by The European Central Bank. The expectation is for policymakers to maintain the current setting, but a shift in rhetoric could drive up demand for the euro. EURUSD was down 0.13%, trading at 1.217 this morning. The UK’s Health Secretary Matt Hancock stated it was too early to confirm if the planned June 21st date to end lockdown restrictions would remain the same. Market participants could see the pound sell off against the dollar or the euro if there’s a delay in England’s reopening. GBPUSD was down 0.34%, trading at 1.413 at the time of writing.
- EUR/USD: 1.216 - 1.220 ▲
- GBP/USD: 1.412 - 1.418 ▼
- AUD/USD: 0.773 - 0.776 ▼
- USD/CAD: 1.205 - 1.209 ▲