Daily Currency Update

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The Greenback trades flat as we await news from Eurogroup meetings and Fed official speeches.

USD - United States Dollar

The U.S. dollar kept a bid amid concerns that U.S.-China tensions were growing at the beginning of this week. The Trump administration is still moving ahead with discussions around possible restrictions on portfolio flows into China, with a particular focus on investments made by U.S. government retirement funds, according to Bloomberg. Furthermore, the U.S. decided to add eight Chinese companies to its trade blacklist, which affects China's ambitions and threatens companies' access to crucial components and relationships with U.S. firms.

In other news, Fed Chairman Jerome Powell said that the central bank would put its efforts to calm money markets without using "quantitative easing." He specifically added they would resume purchases of Treasury securities and he explained that he has his options open on interest rates: "neither the recent technical issues nor the purchases of Treasury bills we are contemplating to resolve them should materially affect the stance of monetary policy."

Key Movers

Prime Minister Boris Johnson accused the European Union of adopting a harder position, and European Council President Donald Tusk accused Johnson of playing a blame game. A call between Johnson and German Chancellor Angela Merkel Tuesday sent the sterling plunging after Johnson said reaching a deal is now "essentially impossible."

The new IMF chief, Kristalina Georgieva said governments may have to coordinate a fiscal-stimulus response. She added, "the global economy is now in a synchronized slowdown." She cited uncertainty from global trade friction, geopolitical tensions, and Brexit. She also warned that it could "last a generation" with possible shifts such as broken supply chains and isolated trade.

Expected Ranges

USD/CAD: 1.3285 - 1.3334 ▲

EUR/USD: 1.0965 - 1.0997 ▼

GBP/USD: 1.2194 - 1.2284 ▲

AUD/USD: 0.6688 - 0.6741 ▼

NZD/USD: 0.6255 - 0.6312 ▼