OFX Daily & Weekly Market News Feed https://www.ofx.com/en-us/ OFX Daily & Weekly Market News Feed en-US Copyright © 2024 www.ofx.com https://www.ofx.com/en-us/forex-news/daily-and-weekly-market-news/2024/03/18/usd-trades-steady-ahead-of-fed-rate-decision/USD trades steady ahead of Fed rate decision <h3>USD - United States dollar</h3> <p>The US Dollar Index (DXY) traded near the 103.55 range this morning, maintaining steady ground ahead of the Bank of Japan (BoJ) and Reserve Bank of Australia (RBA) monetary policy decisions overnight and the Federal Reserve interest rate announcement set for Wednesday. Despite some dovish remarks from Fed Chair Jerome Powell recently, most Fed officials showed caution around premature monetary easing. Rising US Treasury yields lent some strength to the DXY this morning. US Treasury bond yields rose alongside trading figures at 4.75% for the 2-year yield, 4.35% for 5-year yields, and 4.33% for the 10-year yields. Markets will be sure to keep a close eye on Wednesday’s rate decision.</p> <h3>Key Movers</h3> <p>The EUR/USD pair traded in a bearish tone this morning near the 1.08711 range. Euro moves are likely to remain limited ahead of Wednesday’s Fed monetary policy decision.<br /> <br /> The GBP/USD traded in the low 1.27 range this morning. UK inflation is expected out tomorrow, followed closely by the Bank of England (BoE) rate decision on Thursday. The BoE is expected to hold rates at 5.25% while inflation in the UK is expected to drop, which will be crucial for the BoE’s forecast of 2% inflation by mid-year.<br /> <br /> The USD/JPY pair held close to gains over 149.00 this morning ahead of the BoJ’s rate decision tomorrow. According to Bloomberg, the BoJ is expected to hike rates during its meeting tomorrow.<br /> <br /> The USD/CAD traded above the 1.35 level this morning ahead of the release of Canadian inflation data and the Federal Reserve’s widely anticipated rate decision on Wednesday. Canadian Consumer Price Index (CPI) data for February is set to be released tomorrow. West Texas Intermediate (WTI) oil prices rose this morning above the $82 a barrel level. This comes after the International Energy Agency (IEA) edited its oil outlook for 2024 based on the Organization of the Petroleum Exporting Countries (OPEC) cuts. This bolstered oil prices to push upwards of a 3-month high.</p> <h3>Expected Ranges</h3><strong>EUR/USD:</strong> 1.0868 - 1.0905 ▼<br><br><strong>GBP/USD:</strong> 1.272 - 1.2746 ▼<br><br><strong>AUD/USD:</strong> 0.6552 - 0.6573 ▼<br><br><strong>USD/CAD:</strong> 1.3521 - 1.355 ▲<br><br>Mon, 18 Mar 24 00:00:00 +0000https://www.ofx.com/en-us/forex-news/daily-and-weekly-market-news/2024/03/18/usd-trades-steady-ahead-of-fed-rate-decision/https://www.ofx.com/en-us/forex-news/daily-and-weekly-market-news/2024/03/15/usd-maintains-gains-ahead-of-next-weeks-rate-decision/USD maintains gains ahead of next week’s rate decision <h3>USD - United States dollar</h3> <p>The US Dollar Index (DXY) was flat this morning after making gains of over 1% yesterday. The February Producer Price Index (PPI) data was released at higher-than-expected levels with the final demand rising to 0.6%, up from 0.3% in January. The advancing PPI numbers brought inflation worries back to the forefront in the run up to next Wednesday’s Federal Reserve announcement. Markets have already priced in an unchanged interest rate but have been looking at a possible rate cut in May. As recently as a month ago, there was as much as a 40% chance of that happening. Markets are now pricing in a 90% chance the rates will remain where they are even at the next announcement. The University of Michigan Consumer Sentiment data is set to be released this morning and is expected to remain stable at a reading of 76.9 for March.</p> <h3>Key Movers</h3> <p>The euro held steady after losing ground against the USD yesterday. The inflation numbers in France released overnight proved to be the most impactful data point for the Eurozone. Prices in Europe’s second biggest economy were up 0.8% last month, in line with the consensus expectations. As a result, the Financial Times Stock Exchange (FTSE) was up, bolstering the euro further.<br /> <br /> The Canadian dollar stayed soft against the greenback this morning after losing over half a cent yesterday. The Canadian economy showed stronger-than-expected housing starts last month according to a Statistics Canada release this morning. The release showed an expected 253,500 housing starts compared to an expected 230,000 units. In oil news, West Texas Intermediate (WTI) crude oil was down from recent highs but held over $80 a barrel. After seeing WTI prices get over $82 yesterday, commodities sunk to start the Friday session.</p> <h3>Expected Ranges</h3><strong>EUR/USD:</strong> 1.0873 - 1.0993 ▼<br><br><strong>GBP/USD:</strong> 1.2731 - 1.2845 ▼<br><br><strong>AUD/USD:</strong> 0.6553 - 0.6625 ▼<br><br><strong>USD/CAD:</strong> 1.3436 - 1.3549 ▲<br><br>Fri, 15 Mar 24 00:00:00 +0000https://www.ofx.com/en-us/forex-news/daily-and-weekly-market-news/2024/03/15/usd-maintains-gains-ahead-of-next-weeks-rate-decision/https://www.ofx.com/en-us/forex-news/daily-and-weekly-market-news/2024/03/12/dxy-regains-strength-following-the-cpi-data-release/DXY regains strength following the CPI data release <h3>USD - United States dollar</h3> <p>The US Dollar Index (DXY) was up this morning around 0.25% near 103.13 after the release of the Consumer Price Index (CPI) data. Monthly Core CPI, which shows the change in the price of goods and services purchased, excluding food and energy, came out higher than expected at 0.4% versus the expected 0.3%. Likewise, yearly CPI data came in higher than market anticipations at 3.2% instead of 3.1%. Meanwhile, the monthly CPI came in as expected at 0.4%. After the release of the CPI data, the USD rose against most major currencies, including the EUR, GBP, AUD, and CAD.</p> <h3>Key Movers</h3> <p>In Eurozone news, the German Final CPI month-over-month data was released in line with expectations at 0.4%.<br /> <br /> The UK region saw mixed data with the GBP Claimant Count Change and Average Earnings Index releases. The Claimant Count Change, which shows the change in unemployment claims during the previous month, was lower than expected at 16,800 versus the expected 20,300. Meanwhile, the Average Earnings Index, which shows the change in the price of businesses and the government pay for labor, was lower than expected at 5.6% versus 5.7%. This mixed data caused the GBP to dip against the USD by around 0.37% and the CAD by 0.24%. The GBP was also down versus the EUR 0.25%.<br /> <br /> The USD/CAD rate rose again to around 1.35, a 0.13% increase for the USD from yesterday. The Loonie was also up versus the weak GBP this morning. The CAD rose around 0.24% against the GBP today. In oil news, West Texas Intermediate (WTI) crude oil was up this morning around 0.38% at 78.23. There are no notable data releases today in the Canadian region.</p> <h3>Expected Ranges</h3><strong>EUR/USD:</strong> 1.0906 - 1.0945 ▼<br><br><strong>GBP/USD:</strong> 1.2747 - 1.2825 ▼<br><br><strong>AUD/USD:</strong> 0.6586 - 0.6639 ▼<br><br><strong>USD/CAD:</strong> 1.3462 - 1.3525 ▲<br><br>Tue, 12 Mar 24 00:00:00 +0000https://www.ofx.com/en-us/forex-news/daily-and-weekly-market-news/2024/03/12/dxy-regains-strength-following-the-cpi-data-release/https://www.ofx.com/en-us/forex-news/daily-and-weekly-market-news/2024/03/11/usd-holds-steady-ahead-of-inflation-data-release/USD holds steady ahead of inflation data release <h3>USD - United States dollar</h3> <p>The US Dollar Index (DXY) traded just below 103 this morning with some downside likely today. Due to the US Consumer Price Index (CPI) report set to be released tomorrow, trading today has remained slow. Benchmark 10-year US Treasury notes traded around 4.05%, the lowest level in over a week. The Federal Reserve interest rate decision next will ultimately shape how the USD moves forward. According to the CME Group’s FedWatch Tool, expectations to hold rates in next week’s meeting are at 96%, while chance of a rate cut are at 4%.</p> <h3>Key Movers</h3> <p>The EUR/USD pair traded near the 1.0924 mark this morning, holding firm at the elevated levels the pair jumped to during the middle of last week after the European Central Bank (ECB) announced its decision to hold interest rates steady for the 4th consecutive meeting.<br /> <br /> The GBP/USD hit its highest point since July 2023 on Friday, ahead of the UK jobs report, which is set to be released this week. The Bank of England (BoE) is scheduled to meet next week. This morning, the GBP/USD traded near 1.2803.<br /> <br /> The AUD/USD pair dipped this morning to trade around the 0.6604 levels. The AUD will be guided this week by the outcome of the Australian Financial Review Business Summit set to take place tomorrow.<br /> <br /> The USD/CAD pair remained even below the 1.35 mark amid sliding oil prices. Lower oil prices and mixed data from Canadian jobs reports have undermined the Loonie. West Texas Intermediate (WTI) crude oil dipped near the 77.631 levels this morning. The CAD was also negatively affected by slowing domestic wage growth in February at 4.9% from the 5.3% seen in January. This was the second consecutive month of slowing growth, pushing the data to its lowest level since June 2023.</p> <h3>Expected Ranges</h3><strong>EUR/USD:</strong> 1.0916 - 1.0947 ▼<br><br><strong>GBP/USD:</strong> 1.2799 - 1.2864 ▼<br><br><strong>AUD/USD:</strong> 0.6599 - 0.6626 ▼<br><br><strong>USD/CAD:</strong> 1.347 - 1.3508 ▲<br><br>Mon, 11 Mar 24 00:00:00 +0000https://www.ofx.com/en-us/forex-news/daily-and-weekly-market-news/2024/03/11/usd-holds-steady-ahead-of-inflation-data-release/https://www.ofx.com/en-us/forex-news/daily-and-weekly-market-news/2024/03/08/usd-drops-amid-jobs-data-release-and-fed-chairman-remarks/USD drops amid jobs data release and Fed Chairman remarks <h3>USD - United States dollar</h3> <p>The US Dollar Index (DXY) headed into the last trading session of the week down as the US economy added more jobs and equities markets extended the week’s rally. February’s Non-Farm Payroll data released today showed the US economy added 275,000 positions, better than the expected 200,000. This paired with early indications of North American stock markets heading into positive territory had futures markets all trading up. Adding to the USD dip was Chairman of the US Federal Reserve, Jerome Powell indicating a willingness to cut rates earlier than expected during a Senate testimony yesterday.</p> <h3>Key Movers</h3> <p>The Euro gained against the greenback as the European economy reversed negative Gross Domestic Product (GDP) growth. The GDP data for the Eurozone released this morning showed 0.1% growth year-over-year, better than the -0.1% seen previously.<br /> <br /> The GBP/USD reached an 8-month high this morning to trade near 1.28749. With the UK jobs report set to be released next week and the Bank of England (BoE) meeting the following week, markets could see some downward pressure on the pound going forward.<br /> <br /> The CAD was up again against the USD as job numbers in Canada surprised to the upside. Data released this morning showed that the economy added 40,700 positions last month, more than double the 20,000 that was expected. All gains came from full-time positions, which were up 70,600, with a 29,900 drop in part-time roles. This, combined with the USD struggling with stronger equities, helped the Loonie as it headed into the last session of the week. Oil held onto the $78 range markets saw yesterday as concerns over demand for the commodity in China waivered. Chinese growth plans, released earlier this week, have failed to convince markets that demand for commodities will rise significantly.</p> <h3>Expected Ranges</h3><strong>EUR/USD:</strong> 1.0896 - 1.0975 ▲<br><br><strong>GBP/USD:</strong> 1.2752 - 1.2884 ▲<br><br><strong>AUD/USD:</strong> 0.6605 - 0.6718 ▲<br><br><strong>USD/CAD:</strong> 1.3428 - 1.3537 ▼<br><br>Fri, 08 Mar 24 00:00:00 +0000https://www.ofx.com/en-us/forex-news/daily-and-weekly-market-news/2024/03/08/usd-drops-amid-jobs-data-release-and-fed-chairman-remarks/