The dollar is tumbling to its lowest levels against major currencies in over a week as investors continue to digest the Federal Reserve’s decision to not raise interest rates at yesterday’s meeting. Also hurting investor optimism for the dollar, Fed members presented a lukewarm economic growth forecast yesterday for the US and planned fewer interest rate hikes than most analysts had anticipated for 2017. Helping to offset some of the dollar’s fall this morning, the weekly initial jobless claims data showed the lowest claim count since April while housing prices grew more than expected in July. Investors are also awaiting this morning’s release of August’s existing home sales numbers, which are expected to grow a little more than 1% for the month.
Across the Atlantic, the pound is rising against a weaker dollar with no significant data set to come out this morning or tomorrow.
The euro is also up compared to the softening US dollar, with a survey from France reflecting stronger-than-expected optimism from business leaders nearly three months out from the Brexit vote. Tomorrow will bring France and Germany’s preliminary manufacturing and services output numbers for September, which are mostly expected to reflect slow and steady business activity growth for the two countries and the broader Eurozone. Look for a potentially weaker euro should any of these readings miss expectations.
The Canadian dollar is also trading higher against the greenback as oil prices rise past $46 per barrel. The Australian dollar is trending up this morning compared to its US counterpart as we wait for tonight’s speech from Reserve Bank of Australia Governor Philip Lowe. While most analysts expect the RBA to cut interest rates this year, a negative outlook from Lowe on Australia’s exports or China’s economic health could raise the chances for a rate cut and weaken the Aussie dollar.
EURUSD: The euro is up against a weaker greenback as French businesses show optimism.
GBPUSD: The pound is also rising against the weakening dollar with no new data out.
AUDUSD: The Aussie dollar is up as investors wait for tonight’s speech from RBA Governor Philip Lowe.
USDCAD: The Canadian dollar is climbing as oil prices rise past $46 per barrel.