Daily Currency Update

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The Greenback rises as it awaits the FOMC decision this Wednesday

USD - United States Dollar

The Greenback rises around 0.7 percent this morning. The EUR/USD pair falls around 0.55 percent (stronger U.S. dollar). Without more news on the economic front, the focus goes to the Fed. The Federal Reserve meets on monetary policy again this week after their previous meeting six weeks ago. Because of geopolitical uncertainty, the next FOMC meeting decision becomes even more uncertain. According to Bloomberg, at this moment, the probability for the Fed rate being within a range of 1.5 and 1.75 percent by the end of this year is above 80 percent.

Key Movers

In the U.K., Boris Johnson said he believed Britain could still get a Brexit deal ahead of negotiations with Jean-Claude Juncker today. The GBP/USD pair is falling around 0.60 percent this morning.

The news of the devastating attack on the world’s largest crude exporter sent currencies of commodity-linked nations higher, including the Loonie and the Norwegian Krone.

China’s current stimulus policies may not be enough to shield its economy from the worsening effects of the trade war with the U.S. Industrial output rose 4.4 percent from a year earlier in August, which is the lowest for a single month since 2002. Additionally, retail sales came in below expectations. Fixed-asset investment slowed to 5.5 percent in the first eight months, with the private sector lagging state investment for the 6th month. The USD/CNH pair is increasing 0.27 percent this morning (weaker Yuan).

Expected Ranges

USD/CAD: 1.3200 - 1.3276 ▼

EUR/USD: 1.0971 - 1.1011 ▼

GBP/USD: 1.2385 - 1.2445 ▼

AUD/USD: 0.6847 - 0.6890 ▼

NZD/USD: 0.6300 - 0.6381 ▼