Daily Currency Update

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USD retreats from highs

USD - United States Dollar

Demand for the euro and the pound ticked up this morning as the US dollar retreated from recent gains. The US Dollar Index was down 0.16%, trading at 92.28 at the time of writing.

Analysts attribute the USD’s recent strength to growing concern over the Delta variant and its impact over global reopening plans.

Federal Reserve official Mary Daly warned that the spread of the Delta coronavirus variant and low vaccination rates poses a large threat to global recovery, and she urged caution when removing a monetary safety net for the US economy.

Key Movers

Though the pound edged higher against USD, it was still on track for a second consecutive weekly decline. GBPUSD was up 0.55%, trading at 1.3859 at the time of writing.

The UK and EU are back on a Brexit disagreement again, as they struggle to land on common ground regarding the Northern Ireland protocol and fishing issues. Brexit roadblocks, as we’ve seen previously, can lead to a slip in GBP.

The euro continued to trade above 1.18, moving marginally higher against USD after the European Central Bank announced a new inflation target of 2% on Thursday. EURUSD was up 0.19%, trading above 1.18 at the time of writing.

A stronger US dollar and concerns over the spread of the COVID-19 delta variant in Australia helped drive AUDUSD to seven-month lows. This morning the Australian dollar regained some losses, climbing 0.73% against USD to 0.7448 at the time of writing.

Expected Ranges

EUR/USD: 1.1825 - 1.1873 ▲

GBP/USD: 1.3761 - 1.3874 ▲

AUD/USD: 0.7412 - 0.7485 ▲

USD/CAD: 1.2474 - 1.2555 ▼