Pound (GBP) Ticks Lower despite Fishing Row Respite
The Pound (GBP) fell against many of its rivals yesterday as Brexit concerns continued to weigh on Sterling.
Despite France delaying sanctions over the fishing rights dispute, GBP investors remain anxious about the Northern Ireland protocol deadlock and the potential repercussions if a deal is not reached.
The UK’s finalised services PMI later this morning could cause movement if it surprises investors, otherwise Sterling may remain subdued.
Euro (EUR) Quiet ahead of Federal Reserve Decision
The Euro (EUR) was muted through yesterday’s session, although it managed to gain against some of its weaker peers, as EUR investors held back from placing bullish bets ahead of the Federal Reserve rate decision.
A slight downward revision in the Eurozone’s final manufacturing PMI may also have weighed on the Euro somewhat, as the global supply chain crisis continues to hobble European industry.
The single currency may find some support later this morning as the Eurozone’s unemployment rate is forecast to fall to 7.4%. However, movement may be limited as markets brace for the Fed.
US Dollar (USD) Gains as Fed Meeting Gets Underway
The US Dollar (USD) strengthened yesterday as the Fed’s two-day policy meeting began.
Markets expect the Fed to lay out tapering plans this evening, so USD investors grew more bullish in anticipation of such an announcement.
Before the Fed decision, the latest US employment change figures, ISM services PMI and factory orders data could influence USD. And if the Fed tapers this evening then the US Dollar could surge.
Canadian Dollar (CAD) Climbs amid OPEC+ Rumours
The Canadian Dollar (CAD) firmed through yesterday’s session, as CAD investors shrugged off falling oil prices. Instead, investors focused on reports that OPEC+ will not increase production at Thursday’s meeting.
CAD exchange rates may be quieter today as markets await the Fed’s decision this evening and OPEC’s meeting tomorrow.
Australian Dollar (AUD) Firms on China Services PMI
The Australian Dollar (AUD) edged higher in overnight trade after China’s services PMI unexpectedly improved, cheering AUD investors.
New Zealand Dollar (NZD) Gains following Strong Employment Reports
The New Zealand Dollar (NZD) also trended upwards against most of its rivals overnight after some strong jobs data, with the unemployment rate dropping from 4% to 3.4%, compared to forecasts of 3.9%.