Tuesday 9 May, 2023
Daily Currency UpdateThe US dollar bounces back slightly today with the current dollar index (DXY) sitting at the 101.698 range. This bounce comes amid market expectations that the Federal Reserve will not continue to hike interest rates. Analysts believe that the Fed will instead cut rates before the end of the year. A statement made by Federal Reserve board member, Phillip Jefferson, claimed that the banking system is resilient and resilient. Jefferson noted that banks have started to raise lending standards as inflation deflates. Friday’s non-farm payroll data report was better than expected and translated into a brief spike for the USD.
Key MoversThe EUR/USD pair remains bearish amid fresh data out of France. The French balance of trade reports showed a -8.0 billion EUR deficit, coming in better than the expected -9.5 billion EUR.
The pound sterling is trading around $1.2613 versus the USD dollar, down from the year’s high of $1.2670. If the pair continues this downward correction continues, the support level of $1.2580 will be tested and could drop to $1.2550.
West Texas Intermediate (WTI) crude oil is recovering from last week’s volatility as the market awaits the US Consumer Price Index (CPI) data release tomorrow. Crude oil currently sits at just over $72 a barrel.
- EUR/USD: 1.0851 - 1.1211 ▼
- GBP/USD: 1.2354 - 1.2651 ▼
- AUD/USD: 0.6605 - 0.6789 ▼
- USD/CAD: 1.3352 - 1.3678 ▲