Pound (GBP) Dips amid CO2 Shortage
The Pound (GBP) weakened during yesterday’s session as the UK’s gas crisis began to have knock-on effects for other parts of the UK economy.
In particular, a shortage of CO2 – used for slaughtering animals and packaging meat – threatens to significantly disrupt UK food supplies, worsening the UK’s supply chain crisis.
This morning’s industrial trends orders from the Confederation of British Industry (CBI) could bolster Sterling. While it is forecast to fall three points, it is still expected to give a good reading.
Euro (EUR) Recovers as US Travel Rules Relaxed
The Euro (EUR) was initially subdued yesterday but managed to recover in the afternoon amid a modest pullback from the US Dollar (USD) and a relaxation of US travel rules.
After an 18-month ban, the US has eased restrictions on fully vaccinated European travellers. This boosted travel stocks in Europe, potentially supporting the single currency.
Turning to today, a lack of Eurozone data could leave the Euro without a clear direction.
US Dollar (USD) Loses Gains amid Falling Bond Yields
The US Dollar (USD) started yesterday’s session strong, with a risk-off market mood supporting the safe-haven currency.
However, plunging US bond yields took the wind out of USD’s sails, causing it to relinquish its gains as the day progressed.
With no key US data due out today, the ‘Greenback’ could be primarily driven by global risk sentiment, with a modest recovery in risk appetite pressuring USD exchange rates.
Canadian Dollar (CAD) Softens amid Federal Election
The Canadian Dollar (CAD) dipped yesterday as the Canadian federal elections and a fall in oil prices weighed on the commodity-linked ‘Loonie’.
With oil prices rising this morning and Justin Trudeau’s election victory offering political stability, CAD exchange rates could regain ground today.
Australian Dollar (AUD) Firms as Risk Appetite Improves
The Australian Dollar (AUD) ticked higher in overnight trade as a slight recovery in risk sentiment boosted demand for the ‘Aussie’.
New Zealand Dollar (NZD) Strengthens on Upbeat Market Mood
The New Zealand Dollar (NZD) also trended higher overnight, with the risk-sensitive ‘Kiwi’ supported by a slightly more bullish mood among investors.