Home Daily Commentaries USD starts week with continued sell-off

USD starts week with continued sell-off

Monday 9 January, 2023

Daily Currency Update

The USD is globally weaker on Monday as the sell-off that started Friday continues. The USD Index (DXY) has trimmed off under 104 with the current trajectory suggesting further moves down. Commodities and equites are all pointing up as investors seem more willing to take on risk. The benchmark WTI oil price is up over $2 a barrel today getting back into the $76 range. The USD seems most impacted though by key data last Friday with the Non-Farm Payrolls coming in slightly better than expected with the economy adding 223,000 jobs compared to the expected 200,000.  The biggest bright spot was that wage pressures seem to be falling off which had been an ongoing concern particularly in the service sector.

Key Movers

The Euro is continuing gains against the USD to start the week as the USD sells off generally and the Euro zone sees evidence for further rate hikes. Unemployment in the zone remained at 6.5%. The GBO is also making even as the UK government is struggling with strikes across multiple industries. The strength in the Pound is seemingly more about the USD weakening. The CAD is gaining against the USD along with all other majors to start the week.  Canadian employment released Friday shows that the economy remains robust, adding 104,000 jobs compared to an expected 8000.  The dollar is getting a further bump this morning as oil and equities make gains as well. West Texas oil is up over $2 a barrel and all the North American markets are looking positive in pre-market trading.

Expected Ranges

  • EUR/USD: 1.0636 - 1.0723 ▲
  • GBP/USD: 1.2085 - 1.2179 ▲
  • AUD/USD: 0.6876 - 0.6944 ▲
  • USD/CAD: 1.3358 - 1.3449 ▼