Home Daily Commentaries The Greenback touches a 6-day high, acting as a haven

The Greenback touches a 6-day high, acting as a haven

Daily Currency Update

USD - United States DollarThe Trump administration once again stopped labeling China a currency manipulator on Tuesday, a decision that averts a further escalation in the trade war. The Treasury Department issued its report to Congress, expanding the number of countries whose currency and economic policies are scrutinized to 21 from 12. Five countries, Ireland, Italy, Vietnam, Singapore, and Malaysia, all joined China, Japan, South Korea, and Germany on the watch list. Chinese Foreign Ministry spokesman Lu Kang said, “...the report that China is not a currency manipulator is in line with the common understanding of the international community."The Euro slid 0.1 percent and the Kiwi fell 0.4 percent versus the Greenback with a rise in German unemployment and a hacking attack on the Treasury in New Zealand being the main catalysts.US Government bond yields across the world are tumbling again with 10-years treasury notes trading at 2.23 percent and US equity markets falling as global trade tensions mount.

Key Movers

In Canada, according to Bloomberg, 25 analysts surveyed by the financial data vendor see policymakers at the BoC holding rates unchanged when the monetary policy decision is announced at 10 am EST in Ottawa. A few days ago, the BoC commented about low oil prices, slowing growth, and watching an increase in riskier corporate debt. The BoC has also said that risks to the financial system have increased “slightly” over the past year amid growth worries and expanded risk-taking in global markets, while it reiterated its confidence in the country’s ability to handle any shock.

Expected Ranges

  • USD/CAD: 1.3465 - 1.3520 ▼
  • EUR/USD: 1.1104 - 1.1169 ▼
  • GBP/USD: 1.2606 - 1.2676 ▼
  • AUD/USD: 0.6891 - 0.6933 ▼
  • NZD/USD: 0.6485 - 0.6515 ▼