Daily Currency Update

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The Greenback loses strength despite labor data meeting expectations

USD - United States Dollar

The U.S. dollar index fell yesterday following weaker data. Construction spending came in at -1.3 percent versus the 0.3 percent expected, which led to a 0.2 downward revision to the U.S. GDP in the second quarter. However, the move started before the data in what looks like the market second-guessing Fed Powell's view of "only" a mid-cycle adjustment as global growth remains weak and trade tensions continue.

This morning, according to the Bureau of Labor Statistics, total non-farm payroll employment rose by 164,000 in July, and the unemployment rate was unchanged at 3.7 percent. Notable job gains occurred in professional and technical services, health care, social assistance, and financial activities.

Trump's new tweet announced that he is putting 10 percent tariffs on $ 300 billion of Chinese imports that aren't yet subject to U.S. duties starting on September 1st. This was due to China not buying U.S. agricultural products and not stopping the sale of Fentanyl to the U.S.

Key Movers

According to Bloomberg; Boris Johnson's House of Commons majority was cut to just one after the anti-Brexit Liberal Democrats won a by-election in Brecon and Radnorshire, making his balancing act more difficult as he seeks to deliver Brexit by October 31st. The GBP/USD pair is trading flat this morning.

China pledged to retaliate if President Trump piles extra tariffs on its imports, but gave no details. Its response is complicated by the fact that the country's leadership is probably heading off this week for its annual two-week policy enclave, in which Xi Jinping and other officials disappear from public view.

Expected Ranges

USD/CAD: 1.3219 - 1.3312 ▲

EUR/USD: 1.1032 - 1.1114 ▲

GBP/USD: 1.2088 - 1.2183 ▲

AUD/USD: 0.6779 - 0.6824 ▼

NZD/USD: 0.6490 - 0.6559 ▼