Daily Currency Update

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The Greenback resumes its downtrend after Fed Evans declarations and weaker than expected U.S. industrial productivity.

USD - United States Dollar

The U.S dollar index continues to fall this morning. At the time of this writing, it is declining 0.1 percent. The catalyst was a declaration by a Fed official. A few minutes ago, Chicago Fed President Evans spoke on Bloomberg TV. The highlights of his interview were as follows:
- The Fed President thinks the neutral rate has probably moved down,
- The Fed has engineered accommodative policy with the 3rd cut,
- Inflation has been on the light side and below the Fed's 2 percent goal,
- The Fed President would be comfortable if inflation rises to 2.5 percent.

A few minutes ago, U.S. industrial productivity numbers were released, and they fell 0.3 percent in the third quarter after climbing 2.3 percent in the previous quarter. This was much below the 0.9 percent increase expected. The Greenback is under pressure after the release of these numbers.

Key Movers

On the economic front, the economic prospects for the Euro area improved going into the fourth quarter, with strengthening private-sector momentum and an unexpectedly sharp gain in German factory orders suggesting a growth pickup ahead. According to the Federal Statistical Office (Destatis) in Germany, new orders in manufacturing increased in September 2019 by 1.3 percent, higher than the expected number of 0.1 percent. The EUR/USD and EUR/CAD pairs are increasing 0.12 and 0.22 percent at the time of this writing.

Expected Ranges

USD/CAD: 1.3146 - 1.3191 ▲

EUR/USD: 1.1046 - 1.1098 ▲

GBP/USD: 1.2842 - 1.2924 ▼

AUD/USD: 0.6875 - 0.6913 ▲

NZD/USD: 0.6312 - 0.6388 ▼