Pound (GBP) Weakened by Brexit Concerns
The Pound (GBP) was on the back foot again yesterday as the currency was undermined by ongoing Brexit uncertainty.
Recent headlines pertaining to talks hint that progress has been made in a number of areas, but an unwillingness to budge by both the UK and EU on a few remaining key issues such as fishing rights threaten to derail any chance of a deal.
With the 15 October deadline now just a week away, it seems safe to assume that Brexit will remain centre stage for GBP investors today, potentially leaving Sterling vulnerable to additional losses so long as talks remain deadlocked.
Euro (EUR) Strengthens in Upbeat Trade
The Euro (EUR) found modest gains on Wednesday, with the single currency strengthening through the European session courtesy of a dip in the US Dollar (USD).
This uptick in EUR exchange rates also came in spite of disappointing German data as Europe’s largest economy reported a shock contraction in industrial production in August.
Turning to today’s session, the spotlight will be on the minutes from the European Central Bank’s (ECB) latest policy meeting, with a dovish outlook from the bank likely to drag on the Euro.
US Dollar (USD) Retreats on Fresh Stimulus Hopes
The US Dollar (USD) ticked lower during yesterday’s European session, with the currency relinquishing most of its overnight gains after Trump kept hopes of more US stimulus alive.
Having unnerved markets by calling for a halt to stimulus talks between the Democrats and Republicans, subsequent tweets from Trump suggested he would still be open to some targeted spending measures.
Looking ahead, while the latest US initial jobless claims release will be published later this afternoon, will it be overshadowed by growing political uncertainty in the US?
Canadian Dollar (CAD) Dented by Disappointing PMI Release
The Canadian Dollar (CAD) struggled to find support through Wednesday’s trading session after Canada’s latest Ivey PMI reported a significant slowing of business activity in September.
Coming up, a speech by Bank of Canada (BoC) Governor Tiff Macklem will be in the spotlight for CAD investors later this afternoon as they look for any signal that more stimulus may be on the way.
Australian Dollar (AUD) Bolstered by Risk-On Trade
The Australian Dollar (AUD) struck higher overnight on Wednesday, with the risk-sensitive ‘Aussie’ being buoyed by upbeat trade.
New Zealand Dollar (NZD) Tumbles as RBNZ Official Discusses Negative Interest Rates
The New Zealand Dollar (NZD) fell back in overnight trade, retreating in response to comments from the Reserve Bank of New Zealand’s (RBNZ) Christian Hawkesby in which he dropped further hints that the bank seeks to implement negative interest rates.