Pound (GBP) Undermined by Fuel Outages
The Pound (GBP) had a mixed session on Friday, as tailwinds from Thursday’s hawkish Bank of England (BoE) announcement were offset by fuel outages in the UK.
The ongoing shortage of HGV drivers left many petrol stations without some fuel grades, while a few forecourts even had to close, amid warnings of significant economic disruption in the run-up to Christmas.
In the absence of any notable UK data today, GBP exchange rates may be influenced by domestic headlines.
Euro (EUR) Muted ahead of German Election
The Euro (EUR) was relatively subdued through Friday’s session, with EUR investors cautious ahead of Germany’s general election on Sunday.
The single currency was also pressured by Germany’s Ifo business climate reading, which dropped to a five-month low amid supply chain disruption.
Turning to today, EUR investors may look to a speech from European Central Bank (ECB) President Christine Lagarde this afternoon for fresh impetus.
US Dollar (USD) Firms as Market Sentiment Sours
The US Dollar (USD) rallied on Friday, as a prevailing bearish market mood boosted demand for the safe-haven ‘Greenback’.
The shift in risk appetite came after the indebted Chinese property giant Evergrande missed a crucial interest payment on Thursday. The firm now enters a 30-day grace period, after which it will default if it fails to pay.
This afternoon, US durable goods orders are forecast to show a modest recovery. If so, this could provide a small boost to USD exchange rates.
Canadian Dollar (CAD) Boosted by Rising Oil Prices
The oil-sensitive Canadian Dollar (CAD) gained against most of its rivals on Friday as crude prices continued to climb.
If oil prices can sustain their upward trajectory, CAD exchange rates could rise further.
Australian Dollar (AUD) Gains amid Risk-On Trade
The Australian Dollar (AUD) spiked and then eased back overnight, clinging to most of its gains, as a bullish market mood supported the risk-sensitive ‘Aussie’.
New Zealand Dollar (NZD) Ticks Higher on Upbeat Market Mood
The New Zealand Dollar (NZD) made modest gains against most of its rivals overnight as an increased appetite for risk boosted the perceived riskier ‘Kiwi’.