Pound (GBP) Slumps on BoE Rate Cut Speculation
The Pound (GBP) fell sharply on Thursday, erasing most of its gains from the week in response to comments from Bank of England (BoE) Governor Mark Carney.
Speaking in London, Carney struck a decidedly dovish tone, with Sterling sentiment weakening as he hinted at the possibility of a rate cut in the near future, warning the BoE would respond ‘promptly’ if weak growth persisted.
Meanwhile, as the week comes to a close, GBP investors are likely to turn their attention back to Brexit, as Boris Johnson’s EU Withdrawal bill is expected to finally pass through parliament today.
Euro (EUR) Firms on Upbeat German Industrial Data
The Euro (EUR) found some modest support during yesterday’s session, rising on the back of Germany’s latest industrial production figures.
Destatis reported factory output rebounded from -1% to 1.1% in November, beating forecasts of a more modest expansion of 0.7% and easing fears Germany’s economy may have contracted at the end of 2019.
However in the absence of any notable Eurozone data, the Euro may find itself directionless today, leaving it vulnerable to market forces.
US Dollar (USD) Accelerates ahead of US Payrolls
The US Dollar (USD) ticked higher on Thursday, with the currency maintaining its upward momentum in light of the easing tensions between the US and Iran.
The strengthening of USD was further supported by comments from the Federal Reserve’s Richard Clarida, who suggested the bank sees no reason why the current US expansion will not continue through 2020.
Coming up today is the publication of the highly influential US payrolls report, with the US Dollar likely to surge if domestic employment continued to expand at a robust pace in December.
Canadian Dollar (CAD) Weakens as WTI Oil Slips Below $60
The Canadian Dollar (CAD) was left in the doldrums yesterday, with the commodity-linked currency coming under pressure as easing geopolitical tensions saw WTI crude prices fall back below $60 a barrel.
However, the ‘Loonie’ may mount a recovery later this afternoon as Canada’s labour figures are expected to report a rebound in employment growth in December.
Australian Dollar (AUD) Rallies on Impressive Retail Sales
The Australian Dollar (AUD) shot higher in overnight trade on Thursday as domestic retail sales printed above expectations and were reported to have jumped to a nine-month high in November.
New Zealand Dollar (NZD) Buoyed by Easing Tensions in the Middle East
The New Zealand Dollar (NZD) also trended higher overnight, with the risk-sensitive ‘Kiwi’ finding support as tensions between the US and Iran continued to cool.