Pound (GBP) Muted amid Lack of Data
The Pound (GBP) was subdued yesterday as a lack of UK data releases left Sterling without a clear direction.
Additionally, headwinds around the UK’s rising number of Covid cases and the national insurance hike kept pressure on GBP and saw it slip against some of its peers.
Turning to today, the Pound may strengthen this morning as the UK’s latest jobs data was largely positive. The unemployment rate for July dropped to 4.6%, as expected, while the unemployment change for June and claimant count change for August both beat forecasts.
Euro (EUR) Recoups Losses on USD Weakness
The Euro (EUR) dipped yesterday morning but managed to recover in the afternoon, trading sideways overall amid a lack of major market-moving data.
The recovery came as the market mood improved, which dampened the appeal of the safe-haven US Dollar (USD) thereby boosting the single currency due to the currencies’ negative correlation.
Looking ahead, EUR investors may be hesitant ahead of the US CPI release this afternoon, while any significant movement in USD could influence EUR exchange rates.
US Dollar (USD) Dips on Upbeat Market Mood
The US Dollar (USD) started strong in yesterday’s session but lost ground as the day went on as global risk appetite grew.
The shift in risk sentiment came amid a Deutsche Bank survey that revealed cautious optimism among investors, thanks to the market’s incredibly strong recovery this year.
This afternoon, the US inflation rate is expected to ease from 5.4% to 5.3%. Depending on the results and how analysts expect the Federal Reserve to react, we could see some big movement in USD exchange rates.
Canadian Dollar (CAD) Flat despite Rising Oil Prices
The Canadian Dollar (CAD) was relatively rangebound yesterday, despite a steady rise in oil prices, with CAD investors perhaps cautious as Canada enters its final week of campaigning before next Monday’s federal election.
Will a continued rise in WTI crude be enough to support the Canadian Dollar today?
Australian Dollar (AUD) Slumps on Dovish RBA
The Australian Dollar (AUD) tumbled overnight as Reserve Bank of Australia (RBA) Governor Phillip Lowe shattered hopes for early rate hikes, reiterating that he didn’t expect to raise rates until 2024.
New Zealand Dollar (NZD) Dragged Down by AUD
The New Zealand Dollar (NZD) also slipped against most of its rivals overnight as the ‘Kiwi’ suffered from its positive correlation to the ‘Aussie’.