Dollar Holds Steady Ahead of U.S Data
Daily Currency Update
Currency and commodity markets opened Thursday on the back foot, with oil and precious metals under renewed pressure. Focus today turns to a heavy slate of U.S. data releases, including jobless claims, manufacturing PMIs, and construction spending. Sterling and the euro are slightly weaker, while the dollar is holding firm ahead of key economic indicators.
Key Events Today
- Canada’s April manufacturing PMI is also due later today.
- UK mortgage approvals, consumer credit, and money supply figures are due this morning.
- The U.S. calendar is full, with jobless claims, Challenger layoffs, and manufacturing PMIs throughout the afternoon.
- The ISM Manufacturing PMI and subcomponents (new orders, prices, and employment) will be closely watched.
Commodities
- Oil continues to sell off, with Brent down to $60.41 and WTI at $57.45. Prices have now fallen nearly 20% this month, as supply concerns ease and demand forecasts weaken.
- Gold is also lower, trading at $3,231.98, down 1.25% on the day. Silver has dropped 1.34% to $32.18, following broader weakness across metals and reduced haven flows.
Currency Snapshot – Expected Ranges
- EUR/USD: 1.1275 – 1.1350 ▼ The euro is softer this morning. Weak Eurozone growth sentiment continues to weigh.
- GBP/USD: 1.3260 – 1.3340 ▼ Sterling is drifting lower ahead of key U.S. figures and after softer lending data.
- AUD/USD: 0.6350 – 0.6415 ▼ The Aussie is under pressure following a drop in commodity prices and poor RBA index data.
- NZD/USD: 0.5895 – 0.5965 ▼ The Kiwi remains weak, tracking AUD lower and showing limited support from risk assets.
- USD/JPY: 143.80 – 144.90 ▲ Dollar/yen is higher again. Strong U.S. yields continue to drive the pair upward.
- USD/CHF: 0.8235 – 0.8305 ▲ The franc is on the back foot as gold weakens and the dollar remains firm.
- USD/CAD: 1.3780 – 1.3855 ▲Oil weakness is weighing on the loonie. CAD likely to remain offered throughout the session.
- USD/MXN: 19.6000 – 19.7000 ▲ Peso is slightly weaker. Dollar strength and commodities are driving this morning’s move.
- USD/INR: 84.50 – 85.00 ▲ Rupee remains under pressure with limited domestic drivers today.
Market Outlook
With a packed U.S. data calendar, markets are preparing for possible movement in dollar pairs later in the day. Jobless claims and the ISM report will be closely analysed for signs of resilience in the U.S. economy. Weakness in oil and metals is expected to continue weighing on commodity-linked currencies.