US Dollar Index dips ahead of CPI data tomorrow
Daily Currency Update
The US Dollar Index (DXY) was down this morning around 0.16% to trade near 103.97. This decline was seen ahead of the anticipated Consumer Price Index (CPI) inflation data set to be released tomorrow. This data release could cause USD movement and impact future rate decisions. The National Federation of Independent Business (NFIB) Small Business Index, a survey of small businesses regarding the state of the economy, came in a little lower than expected at 88.5 versus the 88.8 level that was expected. Additionally, the Real Clear Markets (RCM) and TechnoMetrica Institute of Policy and Politics (TIPP) Economic Optimism data came in lower than expected at 43.2 compared to the expected 44.2.Key Movers
In Europe, the French Trade Balance data came in better than expected at -5.2 billion versus the -7 billion that was expected. The European Central Bank’s (ECB) rate decision is expected out on Thursday where they are expected to leave the rates unchanged. The EUR was up this morning versus both the USD and CAD.In Japan news, the JPY Consumer Confidence data came in a little lower than expected at 39.5 versus the anticipated 39.6. The JPY was slightly up versus the CAD and USD this morning, which could have been due to a weaker CAD and USD turnout so far today.
The Canadian dollar was weaker overall this morning, dipping down against the EUR, AUD, and GBP. The Bank of Canada’s (BoC) rate decision is expected out tomorrow with most of the market anticipating a hold to interest rates once again. In oil news, West Texas Intermediate (WTI) crude oil was down around 0.82% this morning near 85.72.
Expected Ranges
- EUR/USD: 1.0853 - 1.0887 ▲
- GBP/USD: 1.2650 - 1.2709 ▲
- AUD/USD: 0.6599 - 0.6646 ▲
- USD/CAD: 1.3543 - 1.3585 ▼