Pound (GBP) Dips amid Tax and Brexit Concerns
The Pound (GBP) found little support on Wednesday as the appeal of the currency continued to be suppressed by the recent announcement that the UK government is seeking to increase national insurance contributions.
Also limiting the appeal of Sterling were ongoing Brexit concerns, after the topic was thrust back into the spotlight earlier this week following the government’s moves to extend the grace period on Irish Sea border checks.
These issues could continue to undermine the Pound through today’s session as UK data releases remain thin on the ground.
Euro (EUR) Loses Traction ahead of ECB Rate Decision
The Euro (EUR) softened yesterday in the face of some mixed messages from European Central Bank (ECB) policymakers ahead of the bank’s latest interest rate decision.
Whilst the ECB’s Robert Holzmann suggested the bank could start to ‘normalise monetary policy sooner than most financial market experts expect’, his colleague Bostjan Vasle struck a more cautious tone, suggesting that a ‘highly accommodative’ monetary policy is still needed.
The ECB’s rate decision will undoubtedly act as the main catalyst of movement in the Euro later today. Will a dovish statement from the bank send the Euro lower again?
US Dollar (USD) Bolstered by Cautious Mood
The US Dollar (USD) trended higher on Wednesday, with the safe-haven currency attracting support amidst a more bearish market mood.
This upside in the ‘Greenback’ was further reinforced by the latest JOLTs job opening figures, after they soared to a new record high in July.
Later this afternoon the latest initial US jobless claims could extend the US Dollar’s upward momentum, assuming that new claims continued to fall last week.
Canadian Dollar (CAD) Muted as BoC Leaves Monetary Policy Untouched
The Canadian Dollar (CAD) traded in a narrow range on Wednesday as the Bank of Canada (BoC) concluded its latest policy meeting, by opting to leave its policy untouched, whilst also cautioning about ongoing economic uncertainty.
Australian Dollar (AUD) Regains Ground on Riskier Trade
The Australian Dollar (AUD) initially slipped overnight but managed to recoup its losses as the session came to a close amid a slightly more bullish market mood.
New Zealand Dollar (NZD) Ticks Higher as Market Mood Improves
The New Zealand Dollar (NZD) also see-sawed in overnight trade, trending upwards against most of its peers on the whole, as investors’ appetite for risk increased.