The US dollar is getting a boost this morning after Federal Reserve Vice Chairman Stanley Fischer said US economic growth is “close to [Fed] targets” and added that a 2016 interest rate hike was still on the table. Fischer added that he expects GDP growth will pick up over the coming quarters, which could lead to a greater chance for an interest rate hike and help boost the greenback’s value. Investors will get a better gauge of rate hike chances this Friday when Fed Chair Janet Yellen speaks at the annual symposium in Jackson Hole, Wyoming.
Overseas, the pound is trading higher despite no new data out this morning for the UK, perhaps as investors are more optimistic on the post-Brexit British economy after last week’s news of better-than-expected retail sales results for the month of July.
The euro is trading lower against a strengthening US dollar, also with no big news out today for the Eurozone. The euro could be impacted tomorrow as August’s preliminary business activity data out of France, Germany, and the broader Eurozone comes out. Most of the post-Brexit data thus far out of the Eurozone has reflected economic resilience in the region, but any negative surprises could put pressure on the currency.
The Canadian dollar is trading lower mostly on falling oil prices, despite June’s wholesale sales growth being better than analysts had forecast. The Aussie dollar is dipping against a stronger US dollar while investors await this morning’s leading index from the Conference Board, which will forecast a wide swathe of Australia’s economic activity for the mid-term. The Japanese yen is falling against this morning’s rising US dollar while analysts anticipate tonight’s preliminary manufacturing activity data from August and the Bank of Japan Governor’s press conference.
EURUSD: The euro is trading lower against a stronger US dollar.
GBPUSD: The pound is climbing this morning despite no new data out, perhaps on post-Brexit optimism.
AUDUSD: The Aussie dollar is trading lower against the strengthening US dollar while investors await this morning’s CB leading indicator forecasts.
USDCAD: The Canadian dollar is down as oil prices move lower, despite June’s better-than-expected wholesale sales growth.