Daily Currency Update

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The Greenback retracts 0.1 percent after the tech war kicks off

USD - United States Dollar

President Donald Trump's moves against Huawei Technologies Co. are being felt in the tech sector after chip makers are said to have told employees they will not supply Huawei until further notice. Trump said to Fox News he's pleased with the trade war and China won't become the top superpower under his watch. He also added, “We're taking in billions .....China is obviously not doing well like us."

The US lifted steel and aluminum tariffs on Canada and Mexico last Friday to enable ratification of the new NAFTA; the USD/CAD pair is falling 0.30 percent (stronger Canadian dollar), at the time of this writing. The Fed's Jerome Powell, Richard Clarida, and John Williams may opine about the state of the economy and the trade war later today.

Key Movers

In Australia, contrary to months of polls showing that Scott Morrison would be headed for a loss, he got a victory on Saturday to secure another term for his conservative government. Australia’s center-right government is getting straight back to business, pledging to pass signature tax cuts to fortify a slowing economy. Morrison pledged rebates in order to boost consumer spending. The AUD/USD pair jumped 0.80 percent and the AUD/CAD pair increased 0.57 percent at the time of this writing.

In the UK, Prime Minister Theresa May is making another push to get her Brexit deal through Parliament. She said that she would make a “bold” new offer in a bid to pass her Brexit deal - on the fourth attempt. However, May is set to leave with a leadership contest on the horizon and Boris Johnson is still leading the polls. On the Labour side, leader Jeremy Corbyn is moving closer to backing a second referendum, saying the public should get to vote on any deal eventually reached. The prospect of a no-deal split also terrifies a big chunk of the Tory party and a group led by Work and Pensions Secretary Amber Rudd, who launched a campaign yesterday to try to block Boris Johnson from becoming a leader if he backs no deal. The GBP/USD pair is trading 0.21 percent higher this morning, but the GBP/AUD pair is losing 0.52 percent at the time of this writing.

Expected Ranges

USD/CAD: 1.3410 - 1.3441 ▼

EUR/USD: 1.1137 - 1.1176 ▲

GBP/USD: 1.2679 - 1.2751 ▲

AUD/USD: 0.6891 - 0.6930 ▲

NZD/USD: 0.6523 - 0.6544 ▲