Pound (GBP) Slips on Brexit Uncertainty
The Pound (GBP) remained on the back foot yesterday, with traders remaining wary of the UK currency in light of ongoing Brexit uncertainty.
GBP investors are increasingly fearful of a no-deal Brexit at the end of 2020 as Boris Johnson seeks to adopt a combative stance in trade negotiations with the EU, ruling out any sort of alignment with the EU as part of a future trade deal.
In the absence of any fresh impetus, Brexit uncertainty is likely to continue to act as the main catalyst of movement in Sterling today, leaving the currency vulnerable to further losses.
Euro (EUR) Subdued on Bleak German Factory Orders
The Euro (EUR) struggled to find support on Thursday as underwhelming data from Germany limited the appeal of the single currency.
Germany reported that the contraction in factory orders deepened in December, with order growth slipping from -0.8% to -2.1%, well below the modest expectations of 0.2%.
Meanwhile, the Euro could fact further pressure this morning after Germany’s reported industrial production plummeted to a decade low in December.
US Dollar (USD) Firms as China Slashes Tariffs on US Goods
The US Dollar (USD) trended higher on Thursday, supported by Beijing’s announcement that it would be halving tariffs against a number of US imports later this month.
While the tariff cut was part of the phase one trade deal agreed between the two countries last month, the news was enough to bolster the appeal of the ‘Greenback’.
Centre stage today will be the publication of the US non-farm payrolls later this afternoon.
Following on from an impressive ADP employment report earlier in the week, USD investors will be hoping that a similarly strong reading for the more influential payrolls figures will propel the US Dollar higher this afternoon.
Canadian Dollar (CAD) Steady as Oil Rally Losses Momentum
The Canadian Dollar (CAD) was mostly rangebound through yesterday’s session, with the oil-sensitive ‘Loonie’ struggling to find momentum as the recent rally in crude prices appeared to run out of steam.
Coming up, could an upbeat Canadian jobs report help CAD to rally later this afternoon?
Australian Dollar (AUD) Slips as RBA Downgrades GDP Forecasts
The Australian Dollar (AUD) tumbled overnight on Thursday in response to the Reserve Bank of Australia’s (RBA) latest statement on monetary policy.
In contrast to the relatively upbeat tone stuck by the RBA following its policy meeting earlier this week, the statement painted a less rosy picture of the Australian economy, downgrading the country’s GDP forecasts.
New Zealand Dollar (NZD) Weakened by Risk-Off Trade
The New Zealand Dollar (NZD) also trended lower overnight, with ongoing worries over the coronavirus outbreak in China and it impact on global growth stifling demand for the risk-sensitive ‘Kiwi’.