Pound (GBP) Slips on UK Economic Woes
The Pound (GBP) experienced some selling pressure yesterday, as concerns over the UK’s economic outlook continued to put pressure on Sterling.
This reversed some initial gains which came on the back of some hawkish comments from Bank of England (BoE) policymaker Michael Saunders over the weekend.
The Pound could recover some ground this morning following positive UK employment data, including the unemployment rate, which dropped to 4.5% in August.
Euro (EUR) Subdued amid Absence of Data
The Euro (EUR) was muted through yesterday’s session, as a lack of data left the single currency vulnerable to losses.
Meanwhile, continued concern over rising inflationary pressures and fears that the European Central Bank (ECB) might make a dovish policy error dulled the appeal of EUR.
Looking ahead, the Euro could face significant headwinds later this morning as Germany’s ZEW economic sentiment index for October is expected to drop again to a fresh 19-month low.
US Dollar (USD) Mixed on Lukewarm Risk Appetite
The US Dollar (USD) had mixed success yesterday as a moderate market mood prevented the safe-haven currency from making meaningful gains.
The ‘Greenback’ was also kept in a narrow range as US markets were closed for Columbus Day.
This afternoon, the JOLTs job openings for August could boost USD exchange rates, as openings are expected to remain near record highs.
Canadian Dollar (CAD) Rangebound as Oil Prices Fluctuate
The Canadian Dollar (CAD) hovered near multi-month highs yesterday, but struggled to make further gains, as oil prices fluctuated by about $1.
In the absence of any relevant economic data today, oil prices will likely continue to drive the Canadian Dollar.
Australian Dollar (AUD) Lacks Direction despite Strong Business Confidence
The Australian Dollar (AUD) wavered in a narrow range overnight, despite business confidence in September surging from -6 to 13, well above expectations of -2.
New Zealand Dollar (NZD) Wavers amid Mixed Market Mood
The New Zealand Dollar (NZD) also traded mostly sideways, as a mixed market mood left the risk-sensitive ‘Kiwi’ without a clear direction.