DXY falls as inflation looks to have slowed
Daily Currency Update
The US dollar index (DXY) fell to 104.52 as the USD decreased against most major currencies. Core Consumer Price Index (CPI) month-over-month data, which excludes food and energy numbers, and overall monthly CPI data was lower than expected and much lower than previous levels. Yearly CPI figures were also lower than expected and previous showing that inflation looks to have slowed.Key Movers
In the Eurozone, the German Zentrum für Europäische Wirtschaftsforschung (ZEW) Economic Sentiment data was released. This is a survey of German institutional investors that gives a 6-month economic outlook rating. The data showed a higher-than-expected number which is typically good for the EUR. Currently, EUR is up against USD and CAD.On the UK front, jobless claims data was released and showed a larger-than-expected number of 17,800 versus the anticipated 15,000. UK Average Earnings Index was higher than forecasted, which is typically good for GBP. Currently, the GBP is up versus the EUR and USD.
The Canadian dollar is down against most major currencies but remains up against the USD. Crude oil prices increased today by around 1.3%, lending support to the commodity-linked Loonie. There are no significant data releases on the Canadian front today however Deputy Governor of the Bank of Canada (BoC) Toni Gravelle spoke today. Gravelle addressed recent difficulties in the US and international banking sectors.
Expected Ranges
- EUR/USD: 1.0696 - 1.0834 ▲
- GBP/USD: 1.2266 - 1.2461 ▲
- AUD/USD: 0.6361 - 0.6477 ▲
- USD/CAD: 1.3730 - 1.3843 ▼