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Dollar edges lower

Daily Currency Update

The dollar edged lower on Wednesday morning as price action among currencies continued to be driven by risk sentiment surrounding the effects of Omicron. Data showed that the US economy grew by 2.3% annually in the third quarter, revised up from the prior estimate of 2.1% according to the Commerce Department. The US Dollar Index was down 0.34% at around 96.16 at the time of writing.


Key Movers

Demand for the pound climbed against the dollar after UK Prime Minister Boris Johnson announced that the government will hold off from introducing any new restrictions before Christmas in order to stem the recent rise in Covid-19 cases. GBPUSD was up 0.62% trading at around 1.3346. The Australian dollar and the Canadian dollar trended higher on Wednesday as risk sentiment seemed to shift, with investors setting aside fears the Omicron variant could derail the global economic recovery. AUDUSD was up 0.77% trading at 0.72080 while USDCAD was down 0.43% trading at 1.28560 at the time of writing.

Expected Ranges

  • EUR/USD: 1.1266 - 1.1323 ▲
  • GBP/USD: 1.324 - 1.3347 ▲
  • AUD/USD: 0.7121 - 0.7207 ▲
  • USD/CAD: 1.2854 - 1.2937 ▼
  • USD/MXN: 20.7404 - 20.8594 ▲