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USD seesaws after hot inflation data

Daily Currency Update

Demand for the US dollar seesawed on Thursday following red hot inflation data. USD climbed immediately after data showed that the US annual inflation rate climbed to 7.5% compared to an expected 7.3%, its highest level since 1982. Though the dollar saw a boost from this reading, demand for the safe-haven currency has since dropped. This pushed down USDCAD to around 1.2646 at the time of writing.

Key Movers

EURUSD and GBPUSD gained on Thursday after the US dollar dropped as investors digested the higher-than-expected inflation data from the Bureau of Labor Statistics. EURUSD was up 0.53% at 1.148840, while GBPUSD was up 0.74% at 1.3632 during the midday trading session in New York. Dollar weakness also pushed up the Australian dollar, with AUDUSD climbing 0.91% to trade around 0.72436 at the time of writing.

Expected Ranges

  • EUR/CAD: 1.4467 - 1.4534 ▲
  • GBP/CAD: 1.7145 - 1.7252 ▲
  • AUD/CAD: 0.9086 - 0.9164 ▲
  • USD/CAD: 1.2644 - 1.2716 ▼