Daily Currency Update
USD - United States DollarAfter a week where demand grew for the US dollar, the currency lost momentum to start the last week of September.The USD lost ground the euro, the British pound and the Australian dollar this morning. Demand for the euro increased after a speech by European Central Bank President Christine Lagarde. In remarks provided to the European Parliament’s Economic and Monetary Affairs Committee, Largarde said that the Europen Central Bank would be ready to with additional monetary stimulus. The EURUSD is up 0.21% on the back of the news.
Key Movers
Brexit talks resume tomorrow as both the EU and UK look to come to deal before the 'deadline' of the EU summit on 15th October. Even the deadline date has become a cause of confusion/difference with the UK sticking to the week after next whilst there are reports out of Europe that the EU is already considering the end of October. Either way as dates are pushed back the clock is continuing to click towards the end of the year and the shorter this time frame is the more volatility can be expected.Last week saw the Australian Dollar fall approximately 3.5% against its US counterpart. Having started the week around the 0.73 handle, we now see AUDUSD trading closer to 0.70 as we head into this week. Although the NZD also fell over 3%, AUDNZD fell nearly 0.5% throughout the week and is now trading below the key 1.08 handle. Although a lot of the move can be attributed to weaker risk sentiment and broad-based USD strength, the Australian Dollar was weighed down by rising expectations that the Reserve Bank of Australia will ease monetary policy further at the next meeting.
Expected Ranges
- EUR/USD: 1.161 - 1.167 ▼
- GBP/USD: 1.275 - 1.291 ▼
- AUD/USD: 0.702 - 0.707 ▼
- USD/CAD: 1.336 - 1.340 ▲