Home Daily Commentaries The Greenback soars, recuperating its safe-haven status

The Greenback soars, recuperating its safe-haven status

Daily Currency Update

USD - United States DollarThe Greenback soared 0.2 percent, bolstered by trade war uncertainty. Chinese and U.S. officials haven't got a date for any agreement or schedule with basic terms of re-engagement ahead of a planned meeting later this month. Therefore, a solution to resolve the trade war between the world's two largest economies does not yet seem near. At 10 am Est, the ISM manufacturing PMI survey was released. Last month's index reading of 51.2 was the lowest since President Donald Trump was elected in 2016, which aligned with the forecast for the same reading. The IHS Markit's PMI for U.S. manufacturing, which implied the sector was in recession, comes out 15 minutes earlier than the ISM manufacturing PMI survey.

Key Movers

The British Pound broke the 1.2000 handle, which is a psychological level. However, at the time of this writing, it has managed to bounce above it, and it is trading at 1.2023. This is a new three-year high, following the 1.1905 level previously reached on October 7, 2016. Opposition lawmakers started a move to force Prime Minister Boris John to leave his plans of taking the U.K. out of the European Union behind at all costs on October 31st. According to the Wall Street Journal, the escalating trade war between the U.S. and China is affecting the global economy, hitting industries in Asia including Japan and South Korea, as well as Germany in Europe. Global industrial production fell for three months until June, as did trade flows, and a series of surveys of manufacturing companies from Asia and Europe, which suggests a rebound is unlikely over the coming months. The Chinese Yuan dropped to its weakest level against the U.S. dollar in 11 years at around 6:30 pm EST yesterday, extending a slide that started days after President Trump said he would impose tariffs on almost all Chinese imports.

Expected Ranges

  • USD/CAD: 1.3338 - 1.3397 ▲
  • EUR/USD: 1.0952 - 1.0987 ▼
  • GBP/USD: 1.2015 - 1.2093 ▼
  • AUD/USD: 0.6738 - 0.6760 ▲
  • NZD/USD: 0.6300 - 0.6330 ▲