Home Daily Commentaries USD weakness continues as GBP/USD reaches 10-month highs

USD weakness continues as GBP/USD reaches 10-month highs

Daily Currency Update

The US dollar sank to a two-month low on Tuesday as another round of weak economic data reinforced investor bets that the Federal Reserve is nearly done with its tightening cycle even as other central banks are seen still raising interest rates to overcome persistently high inflation.

GBP rose to its highest level against the USD since June 2022, while the EUR reached its highest level since February earlier this year. Further dollar weakness also came from announcements around Russia’s latest likes for the Chinese Yuan and the China-Brazil pact to ignore the US Dollar as an intermediate currency.

US data showed job openings in February dropping to the lowest in nearly two years, undermining the US dollar as the numbers indicated that interest rate increases from the Fed may be nearing the end of its cycle.

Key Movers

Today, traders will be focused on the ADP Employment Change report, followed by jobless claims on Thursday, and ending the week with US Nonfarm Payrolls data. Any unexpected releases could add further volatility to the USD.

Expected Ranges

  • GBP/USD: 1.2455 - 1.2535 ▲
  • GBP/EUR: 1.1365 - 1.1435 ▲
  • EUR/USD: 1.0905 - 1.0985 ▲