Global currency dynamics shift as USD gains ground
Daily Currency Update
Over the past week, currency markets closed with a renewed burst of US dollar strength. This resurgence was largely fuelled by mounting political and structural fragility across other major currencies, in particular, the Euro has been under pressure amid political uncertainty in Europe.Today, market activity is muted. Many major economies are in holiday mode - notably, the U.S. and Canada markets are closed.
Looking ahead, all eyes will now turn to new data releases due tomorrow, with the spotlight on key economies including the K, Germany, and the USA. These releases could reintroduce momentum into the market and provide fresh direction for currencies - especially USD and EUR pair.
Key Movers
Earlier today, China released its latest trade figures for September, which surprised on the upside. In dollar‑terms, exports rose by 8.3 % year‑on‑year, well above consensus expectations. Imports also grew strongly, up 7.4 %, far exceeding forecasts.The strength in imports is especially notable: it suggests that domestic demand in China is holding up better than many believed, countering narratives of a fragile internal recovery.
The robust export performance eases some concerns about global demand softness and trade headwinds, especially amid ongoing worries about tariffs and protectionism. As a result, though China continued to record a trade surplus, that surplus narrowed in September compared to prior months, reflecting the faster growth in import spending.
Expected Ranges
- GBP/USD: 1.3310 - 1.3380 ▼
- GBP/EUR: 1.1470 - 1.15 ▼
- GBP/AUD: 2.0430 - 2.0475 ▼
- EUR/USD: 1.1610 - 1.1650 ▼