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The Greenback gives back some gains after the release of core durable goods data

USD - United States Dollar

The U.S. dollar had increased by 0.21 percent yesterday, but it is falling slightly today, following the release of core durable goods orders which came in at 0.5 percent month to month. The increase in durable core orders was mostly military-related and unlikely to persist. Demand was weak in most critical industrial segments. This key measure of business investment reflects worries over the trade war with China and a slowing U.S. economy.

U.S. dollar had traded higher yesterday after Fed Vice Chairman Richard Clarida suggested that the central bank will alter its strategy for achieving price stability. He added that U.S. inflation expectations are currently in line with the central bank's 2 percent goal and the economy is currently operating at or close to the two goals of maximum employment and stable inflation. Clarida said he does not see a pressing need for new rate cuts to push inflation back up. Furthermore, the U.S. dollar ended higher after the release of a whistleblower complaint in the Trump impeachment investigation. There was a video of a closed-door meeting that showed the president declaring, "We're at war" and attacking the whistleblower who revealed his controversial phone call with Ukraine's leader.

Key Movers

In Europe, the tensions between the European Central Bank and Germany have again exploded into public view after the resignation of Sabine Lautenschläger, who represented Germany on the central bank's executive board. Ms Lautenschläger is leaving weeks after publicly opposing further easing of super-loose monetary policy by the ECB. On top of that, ECB economist Philip Lane said he thinks there remains room for the bank to cut rates again and said the stimulus program which has split policymakers was, "…not such a big package." This influenced the Euro negatively, falling almost 0.30 percent against the Greenback in yesterday’s trading session.

The European Union is losing faith that Boris Johnson can deliver a Brexit deal by the Oct. 31st. Trust has deteriorated amid Johnson's inflammatory rhetoric following the Supreme Court's declaration that his suspension of Parliament was illegal. At the same time, the Bank of England may need to cut interest rates should Brexit uncertainty persist, according to policymaker Michael Saunders. The British Pound felt the selling pressure after the news.

Expected Ranges

USD/CAD: 1.3215 - 1.3255 ▼

EUR/USD: 1.0926 - 1.0963 ▲

GBP/USD: 1.2299 - 1.2418 ▲

AUD/USD: 0.6754 - 0.6796 ▲

NZD/USD: 0.6276 - 0.6322 ▲