US Dollar Slides following Dire Payrolls Data

Pound (GBP) Ticks Higher despite Energy Concerns

The Pound (GBP) edged higher against many of its rivals on Friday, despite renewed concerns about the UK’s energy crisis.

Sterling may have been supported by a more positive market mood and a recovery in the UK stock market.

Turning to today, the Pound looks to maintain its bullish momentum, following comments from a Bank of England (BoE) policymaker over the weekend, in which he warned that households should brace for ‘significantly earlier’ interest rate rises.

Euro (EUR) Weakens as Germany’s Trade Surplus Narrows

The Euro (EUR) softened through Friday’s session after Germany’s balance of trade figures printed below forecasts.

Germany’s trade surplus shrunk to its smallest since May 2020, printing at €10.7bn versus the expected €14.4bn.

With no Eurozone data due out today, the single currency may remain vulnerable to losses.

US Dollar (USD) Falls as Non-Farm Payrolls Disappoints

The US Dollar (USD) faced selling pressure on Friday after the US non-farm payrolls report fell far short of market expectations.

September was the worst month for payroll figures so far this year, with only 194,000 jobs added to the US economy versus the forecast of 500,000, raising some doubts that the Federal Reserve will be ready to announce its tapering plans next month.

In the absence of any US economic data releases today, risk appetite could drive USD exchange rates.

Canadian Dollar (CAD) Soars on Rising Oil and Upbeat Data

The Canadian Dollar (CAD) surged on Friday amid rising oil prices, hitting a two-month high against the US Dollar, as WTI crude briefly breached £80 a barrel.

The ‘Loonie’ was also buoyed by a surprisingly strong employment report.

Looking ahead, oil prices are likely to drive CAD exchange rates today. Will crude continue to rise?

Australian Dollar (AUD) Firms as NSW Reopens

The Australian Dollar (AUD) climbed overnight, boosted by positive Covid news, as New South Wales lifted restrictions for fully vaccinated citizens, and a risk-on market mood.

New Zealand Dollar (NZD) Undermined by Covid Concerns

The New Zealand Dollar (NZD) had mixed success in overnight trading as an upbeat market mood was offset by rising Covid cases.