US Dollar Jumps after Powell Reappointed as Fed Chair

Pound (GBP) Ticks Lower on BoE Comments and Brexit Concerns 

The Pound (GBP) slipped lower through yesterday’s session as cautious comments from Bank of England (BoE) Governor Andrew Bailey and ongoing Brexit concerns from the weekend weighed on the Pound. 

Sterling faced further headwinds in the afternoon when UK energy company Bulb became the biggest supplier so far to collapse into special administration. 

GBP investors will be looking to the UK’s PMIs this morning for fresh impetus. Will strong results boost the Pound? 

Euro (EUR) Muted amid Rising Covid Cases 

The Euro (EUR) had mixed success yesterday, managing to edge up against its weaker rivals despite concerns that rising Covid cases in mainland Europe will lead to more lockdown restrictions. 

The single currency faced more pressure in the afternoon as Eurozone consumer confidence fell by more than expected, further capping EUR’s meagre gains. 

Looking ahead, the Eurozone PMIs beat forecasts this morning to show a faster pace of expansion in November. As such, the Euro could climb. 

US Dollar (USD) Climbs after Fed Chair Powell Reappointed 

The US Dollar (USD) initially wavered yesterday as markets awaited the appointment of the next chair of the Federal Reserve and Wednesday’s meeting minutes from the Federal Open Market Committee (FOMC). 

The ‘Greenback’ then gained after President Biden renominated Jerome Powell for a second term as Fed Chair, with USD investors cheered by the continuity during a tricky time in the US economic recovery. 

The US PMIs this afternoon are forecast to show sharper expansion in both manufacturing and the services sector, which could further support the US Dollar’s winning streak. 

Canadian Dollar (CAD) Stumbles as Oil Remains Muted 

The Canadian Dollar (CAD) fell yesterday as a muted oil market and strong US Dollar weighed on the commodity-linked currency. 

Could a speech from Bank of Canada (BoC) Deputy Governor Paul Beaudry bolster the ‘Loonie’ today? 

Australian Dollar (AUD) Undermined by Gloomy Market Mood 

The Australian Dollar (AUD) slipped in overnight trade, despite positive manufacturing and services PMIs, as a souring market mood weighed on the risk-sensitive currency. 

New Zealand Dollar (NZD) Dented by Slump in Sales 

The New Zealand Dollar (NZD) fell sharply overnight following a slump in quarter-on-quarter retail sales, with the latest figure printing at -8.1% compared to the -0.5% forecast. 

Samuel Birnie

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