Home Daily Commentaries USD up as equities point to lower open

USD up as equities point to lower open

Friday 13 January, 2023

Daily Currency Update

The USD is ending the week on an upswing as equities markets point to lower opens in North America. They greenback which had continued selloffs in the Asian session turned upwards during European trading. As a result, it has made gains against most major currencies. Seemingly the start of US earnings where the first set of releases came out early this morning from major US banks. These results showed mixed results, causing investors to be a bit cautious. On the data front, the only US data today will be the release of the University of Michigan Consumer sentiment survey.  Expectations are that consumer confidence may actually improve in January moving from the previous 59.7 on the index to 60.5.

Key Movers

The Euro saw a bump up against the USD in the overnights after GDP in Germany beat expectations. Annual economic growth in Europe’s biggest economy came in at 1.9% versus the expected 1.8%. The GBP is down during the European session as UK GDP growth came in slower than expected. The annual GDP growth was only 0.2% and the moving 3-month average showed a decline of -0.3%. The Canadian dollar is seeing a pause to the rally it has seen this week as the USD gains in the wake of US earnings. Commodities which usually help the dollar are up, with WTI oil prices continuing to move up towards the $80 a barrel make.  However, the equities markets are down ahead of the North American open, so the USD is up as investors take money out of equities and park it in US treasuries.

Expected Ranges

  • EUR/USD: 1.0777 - 1.0863 ▼
  • GBP/USD: 1.2124 - 1.2242 ▼
  • AUD/USD: 0.6907 - 0.6993 ▼
  • USD/CAD: 1.3325 - 1.3435 ▲