Pound (GBP) Mixed amid Lack of Data
The Pound (GBP) had a mixed session yesterday, as a lack of UK data left Sterling open to movements in its paired currencies.
Expectations of an imminent Bank of England (BoE) rate hike seem to have faded following Friday’s mixed data and rising Covid cases in the UK, thereby removing a key tailwind for GBP.
Looking ahead, the latest distributive trades data from the Confederation of British Industry could provide Sterling with a modest boost, as economists expect the balance to rise from +11 to +13.
Euro (EUR) Falls as German Business Sentiment Slips
The Euro (EUR) tumbled yesterday after Germany’s Ifo business climate for October fell for the fourth consecutive month, printing slightly below expectations.
As supply bottlenecks continue to hobble the Eurozone’s largest economy, business sentiment dropped to its lowest level since April.
With Eurozone data thin on the ground today, the single currency could be vulnerable to losses.
US Dollar (USD) Gains on Rising Bond Yields
The US Dollar (USD) found some success yesterday as rising US Treasury yields boosted the demand of the ‘Greenback’.
However, USD’s gains were capped and it fell against its riskier rivals as a fairly upbeat market mood weighed on the safe-haven currency.
This afternoon the Conference Board (CB) consumer confidence report for October is expected to show a fourth consecutive month of decline in consumer morale, which could dent the US Dollar.
Canadian Dollar (CAD) Dips despite Oil Hitting a Multi-Year High
The commodity-linked Canadian Dollar (CAD) fell against most of its peers in yesterday’s session, despite oil prices briefly touching a seven-year high of $85.41.
A lack of Canadian data today could leave the ‘Loonie’ without much support, while CAD investors may also be hesitant to place any aggressive bets ahead of the Bank of Canada (BoC) rate decision tomorrow.
Australian Dollar (AUD) Loses Ground as Market Mood Shifts
The Australian Dollar (AUD) firmed overnight amid a risk-on market mood, only to lose its gains at the open of the European session as sentiment soured.
New Zealand Dollar (NZD) Erases Gains amid Risk-Off Mood
Likewise, the New Zealand Dollar (NZD) trended higher in overnight trade but has tumbled back down this morning.