Pound Slips as Gas Prices Start Soaring Again

Pound (GBP) Falls as Russia Gas Hopes Fade

The Pound (GBP) slipped in yesterday’s session as UK gas prices began to soar again, raising concerns about the country’s energy crisis.

After a pipeline capacity auction yesterday showed no increase of gas supplies from Russia into Europe, hopes of a promised intervention from Moscow faded and prices started to rise.

Looking ahead, the Bank of England (BoE) Governor Andrew Bailey is due to speak today. Any more hawkish comments could boost rate hike bets and support Sterling.

Euro (EUR) Mixed amid Shifting Market Mood

The Euro (EUR) had mixed success yesterday, firming against the Pound and the US Dollar (USD) but losing ground against its other peers in the afternoon.

The pullback in EUR seems to have come as an improving market mood saw investors ditch the Euro in favour of riskier assets, while a lack of Eurozone data left the Euro vulnerable.

Speeches from ECB policymakers Fabio Panetta and Philip Lane could dent the single currency later, as both officials are among the most dovish in the central bank.

US Dollar (USD) Dented by Industrial Production Miss

The safe-haven US Dollar (USD) initially firmed yesterday, as a risk-off mood characterised the first half of the European session.

However, the ‘Greenback’ then fell in the afternoon as risk appetite improved and US industrial production surprised the market by unexpectedly contracting in September.

USD investors will be awaiting speeches from some key Fed officials today for fresh impetus. Any new hawkish hints could boost the ‘Greenback’.

Canadian Dollar (CAD) Muted amid Falling Oil and Positive Data

The Canadian Dollar (CAD) had a mixed day yesterday, as a slight dip in oil prices was offset by better-than-expected business outlook survey results.

With no Canadian data due out today, the price of crude could drive the oil-linked ‘Loonie’.

Australian Dollar (AUD) Gains on RBA Optimism

The Australian Dollar (AUD) surged overnight as the latest Reserve Bank of Australia (RBA) meeting minutes conveyed cautious optimism, while higher commodity prices and a bullish mood also supported the ‘Aussie’.

New Zealand Dollar (NZD) Strengthens amid Risk-On Mood

The New Zealand Dollar (NZD) also firmed in overnight trade, with the upbeat market mood boosting the risk-sensitive ‘Kiwi’.

Samuel Birnie

Contact Samuel Birnie