Daily Currency Update
USD - United States DollarThe Greenback is trading lower versus different pairs after the British Pound outperformed G8 currencies and robust data from the Euro Zone was released (see key drivers for more details). Drivers for the fall of the U.S. dollar include market participants chasing safe-haven currencies such as the Japanese Yen, which gained over 0.3 percent early today. The Japanese Yen is trading at 110.00 at this moment, given the outbreak of a deadly virus originating in central China, which entered a new phase of severity. There is no news in the U.S. economic data calendar for today, and the next time we will hear from Fed speakers will be at the Fed meeting on January 29th.
Key Movers
Yesterday was a different world for the FX market; the Euro and Pound were getting hammered without much news, as it was Martin Luther King Day in the U.S. However, a French diplomat said that French President Emmanuel Macron and U.S. President Donald Trump agreed to a truce in their dispute over digital taxes where neither side will set tariffs this year. This was the first spark that boosted the EUR crosses to go higher, and the Pound followed with positive momentum yesterday afternoon. The party continued for the Euro and the Pound in overnight trading in Europe. The Euro increased versus the U.S dollar after German ZEW January investor expectations came at 26.7, beating an estimate of a 15.0. At the same time, the U.K. released the jobless rate, which held the four-decade low of 3.8 percent, while the number of people in work in the U.K. rose by 208,000, which is the most in almost a year and double the market forecast.
Expected Ranges
- USD/CAD: 1.3033 - 1.3065 ▲
- EUR/USD: 1.1100 - 1.1133 ▲
- GBP/USD: 1.3043 - 1.3116 ▲
- AUD/USD: 0.6840 - 0.6879 ▼
- NZD/USD: 0.6584 - 0.6621 ▼