Home Daily Commentaries USD down so far today versus EUR and CAD

USD down so far today versus EUR and CAD

Weston Blystone
Written by
Weston Blystone

Weston Blystone

OFXpert

At OFX, Weston collaborates closely with businesses, guiding them and providing invaluable insights into foreign exchange strategies to mitigate risk effectively.

| Monday 5 August, 2024

Daily Currency Update

Today, the Final Services Purchasing Managers' Index (PMI) data was released, showing a slight underperformance compared to expectations. The PMI registered at 55.0, below the anticipated 56.0. Conversely, the Institute for Supply Management (ISM) services PMI exceeded expectations, recording a value of 52.4 compared to the forecasted 51.1. Despite these mixed signals, the U.S. dollar is under pressure due to disappointing employment data from Friday. This has led to a decline in the DXY index by 0.65%, positioning it at 102.54. Currently, the USD is down against both the Euro (EUR) and the Canadian Dollar (CAD).

Key Movers

In Europe, Germany's Final Services PMI surprised positively, coming in at 52.5 against an expected 52. Meanwhile, the Eurozone's Final Services PMI met expectations at 51.9. The United Kingdom showed a slight improvement with its Final Services PMI recording 52.5, marginally above the forecasted 52.4. A significant shift has occurred in the interest rate futures market, where two quarter-point rate cuts by the Bank of England (BoE) are now fully priced in by December. This reflects a growing consensus among investors that the BoE may need to adopt a more aggressive monetary easing stance to tackle emerging economic challenges. Consequently, the British Pound (GBP) has weakened against the USD, CAD, and EUR. Currently, the EUR is stronger against GBP, USD, and CAD.

Expected Ranges

  • EUR/USD: 1.0892 - 1.1008 ▲
  • GBP/USD: 1.2709 - 1.2816 ▼
  • AUD/USD: 0.6347 - 0.6517 ▼
  • USD/CAD: 1.3809 - 1.3946 ▼

Written by

Weston Blystone

OFXpert

Weston is on a mission to help people make the most out of their foreign exchange transfers. As Corporate Client Associate at OFX, he collaborates closely with businesses, guiding them and providing invaluable insights into foreign exchange strategies to mitigate risk effectively. Always eager to deepen his understanding and share his expertise with others, Weston finds great satisfaction in working with diverse individuals providing currency risk management strategies.