Pound (GBP) Slumps amid Gloomy Mood
The Pound (GBP) found itself on the defensive through Tuesday’s session, with the currency falling victim to jittery market conditions.
This wasn’t helped by the radio silence surrounding Brexit trade talks as well as concerns over England’s new lockdown and how this could impact the UK economy.
Meanwhile, the Bank of England (BoE) has helped the Pound to mount a comeback this morning, after the bank announced a larger-than-expected stimulus injection this morning as it pumped £150bn into the UK economy.
Euro (EUR) Firms as Eurozone’s Private Sector Avoids Contraction
The Euro (EUR) held its ground remarkably well in mid-week trade, with the single currency able to claw back its initial losses against the US Dollar (USD) to close the European session virtually unchanged against its main currency rival.
This was likely in part thanks to the Eurozone’s latest PMI release as October’s finalised figures saw the bloc’s private sector narrowly avoid contraction at the start of the fourth quarter.
Coming up, the Euro could face some headwinds this morning with the publication of the Eurozone’s latest retail sales figures, with economists forecasting sales growth will have begun to contract again in September.
US Dollar (USD) Strengthened by Knife-Edge Election
The US Dollar (USD) initially shot higher yesterday, with the currency being catapulted higher through the first half of the European session as equity markets were spooked by US election uncertainty.
However, these gains began to fade later in the session as signs that Biden might clinch a narrow victory helped fuel a market recovery, tempering demand for the safe-haven US Dollar.
While election updates will remain in the spotlight for USD investors today, the conclusion of the Federal Reserve’s latest policy meeting will also be of note, with the US Dollar poised to strengthen again if the Fed warns over growth in the fourth quarter.
Canadian Dollar (CAD) Steady as Oil Prices Strengthen
The Canadian Dollar (CAD) was mostly rangebound on Wednesday as an uptick in oil prices helped the commodity-linked ‘Loonie’ to offset data revealing a surprise expansion in Canada’s trade deficit in September.
Australian Dollar (AUD) Muted on Weak Trade Figures
The Australian Dollar (AUD) remained mostly flat overnight on Wednesday, with the ‘Aussie’ struggling to find support after Australia’s latest trade figures reported a worrying drop in imports in September.
New Zealand Dollar (NZD) Steady as Markets Await Election Outcome
The New Zealand Dollar (NZD) was also rangebound in overnight trade, with investors seeming unwilling to take out any bets on the ‘Kiwi’ before the final result of the US election is known.