Daily Currency Update

Get access to our expert daily market analyses and discover how your currency has been tracking with our exchange rate tools.

The U.S dollar falls following weak retail sales, and China threatens to retaliate against the Hong Kong bill.

USD - United States Dollar

China threatened retaliation if the U.S. Congress enacts legislation supporting Hong Kong protesters. The House passed measures favoring the pro-democracy movement, including one putting Hong Kong's special trading status under review. China warned the U.S. lawmakers to stop meddling in its internal affairs, "…before falling off the edge of the cliff." FX market participants are taking this situation with a grain of salt, although worries are increasing that this may make negotiations over a trade deal between the U.S. and China more difficult.

On the release side, weak U.S. retail sales decrease for the first time in seven months in September, indicating that manufacturing-led weakness could be spreading to the broader economy. Retail sales are the primary source of economic growth; therefore, this new data point might bolster the case for a third straight Fed interest-rate cut. The U.S. dollar and the equity market were negatively affected.

Key Movers

The British Pound continues trading with each new set of headlines; it is moving 0.34 percent higher, trading at 1.2824 at the time of this writing. An optimistic Michel Barnier is the primary driver of the cable rally this morning. Barnier has told EU Commissioners he is confident of getting a deal done today. However, the full thread makes a mention that there are still outstanding issues yet to be resolved, and it could go right down to the wire.

Barnier will still brief EU ambassadors later today. At the same time, according to The Guardian, EU sources said an extension to Britain's withdrawal beyond Oct. 31st may still be required if an agreement is secured.

Expected Ranges

USD/CAD: 1.3191 - 1.3241 ▲

EUR/USD: 1.1017 - 1.1081 ▲

GBP/USD: 1.2760 - 1.2842 ▲

AUD/USD: 0.6718 - 0.6753 ▼

NZD/USD: 0.6220 - 0.6277 ▼