Daily Currency Update

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The Greenback falls following a robust British Pound and a more dovish Fed.

USD - United States Dollar

The U.S. dollar traded on the back foot yesterday after Fed Chief Jerome Powell kept interest rates on hold and said that the outbreak of the Coronavirus will likely hit the Chinese economy and could spill wider. On top of that, this morning, the Greenback falls amid gains in the Pound after the Bank of England avoided cutting its official interest rate, while haven currencies such as the Japanese Yen advanced following ongoing worries about the spread of the Coronavirus and its impact on global growth.

U.S. gross domestic product is anticipated to climb at an annualized 2 percent rate in the fourth quarter, compared with 2.1 percent in the prior period, according to the median forecast from a Bloomberg survey of economists.

The U.S. dollar is contracting following preliminary GDP figures. Furthermore, additional data saw initial job claims rising at a weekly 216K. This data is not helping the U.S. dollar.

Key Movers

The British Pound bounced before the Bank of England’s interest-rate decision. The Sterling increased toward 1.3100 just before Bank of England policymakers surprised markets by voting 7-2 for no change; however, many market participants had expected a 50 - 50 chance.

Expected Ranges

USD/CAD: 1.3179 - 1.3260 ▲

EUR/USD: 1.1011 - 1.1061 ▲

GBP/USD: 1.3086 - 1.3135 ▲

AUD/USD: 0.6669 - 0.6735 ▼

NZD/USD: 0.6425 - 0.6500 ▼