US Dollar Takes Back Some Lost Ground From Its Peers
Wednesday 20 November, 2019
Daily Currency UpdateUSD - United States DollarThe US is beginning to feel the spillover effect from the US-China trade war, however, to a lesser extent to the majority of other global economies. US-China talks have been halted once again due to the rising political tensions in Hong Kong. The aim is still to get the 'Phase 1' agreement signed by the end of 2019, to sort the fine details by the end of Q1 2020. The USD and EUR remained relatively muted on Tuesday and early-morning trade on Wednesday. This may not be the case over the next few days; however, as the FOMC and ECB monetary policy meeting minutes are released. The key point to take from the release will be the economic outlook going forward.
Key MoversMoves among major currencies were largely muted throughout Tuesday with both the USD and Euro trading flat on the day. Sterling edged lower through trade overnight and today as investors checked expectations as the December 12 election looms ever nearer. Recent polls show the incumbent Conservatives hold a relatively comfortable lead over its primary opposition. Rivals bolstering expectations Johnson will be able to win a majority and force his withdrawal agreement through the House of Commons, allowing the UK to exit the EU on January 31. While sterling still looks cheap much of the upside that would come from a Johnson victory has already been priced in with investors wary of extending gains significantly beyond 1.30 in the short term.
- EUR/USD: 1.1063 - 1.1082 ▼
- USD/CAD: 1.3262 - 1.3327 ▲
- AUD/USD: 0.6789 - 0.6832 ▼
- NZD/USD: 0.6403 - 0.6436 ▼