Pound (GBP) Slips as UK Covid Cases Rise
The Pound (GBP) weakened against the majority of its rivals yesterday as a lack of UK data left Sterling vulnerable to losses.
Rising coronavirus cases in the UK also may have dented GBP, with Health Secretary Sajid Javid announcing on Monday that there is a ‘community transmission of the Omicron coronavirus variant’ in England.
Turning to today, reports suggest the UK will offer France an olive branch over the Brexit fishing row which has dragged on for months. Could a cooling of tempers bolster GBP?
Euro (EUR) Falls on Troubling German Data
The Euro (EUR) tumbled yesterday amid mixed Eurozone data and a risk-on market mood, which weighed on the perceived safer currency.
Although German industrial production beat forecasts to rise by 2.8%, it still remained 6.5% below pre-pandemic levels. Meanwhile, Germany’s ZEW economic sentiment index dropped, with the current conditions indicator returning to negative territory for the first time since June.
Looking ahead, a lack of impactful Eurozone data today may leave EUR vulnerable to losses.
US Dollar (USD) Mixed amid Risk-On Mood
The US Dollar (USD) had mixed success yesterday as the safe-haven currency’s appeal was dampened by the prevailing bullish market mood.
Nevertheless, the ‘Greenback’ was able to climb against the Pound and the Euro as hawkish comments from Federal Reserve officials last week continue to provide a tailwind ahead of the bank’s meeting next Wednesday.
Today, USD investors will be looking to the JOLTs job openings data this afternoon for fresh impetus.
Canadian Dollar (CAD) Surges on Rallying Oil and Strong Trade Data
The Canadian Dollar (CAD) strengthened yesterday as oil markets continued to rally on the hopes that a milder Omicron variant will not dent demand for crude.
In addition, Canada’s balance of trade figures for October showed stronger-than-expected growth in both exports and imports. The country’s trade surplus widened to CA$2.1bn, a smidgen above forecasts.
This afternoon we have the Bank of Canada’s (BoC) interest rate decision. While analysts expect the bank to keep rates unchanged, any hawkish forward guidance could see CAD climb higher.
Australian Dollar (AUD) Holds Near Highs as Market Remains Cheery
The Australian Dollar (AUD) levelled out overnight after making impressive gains during yesterday’s upbeat European session.
New Zealand Dollar (NZD) Edges Lower as Rally Fades
The New Zealand Dollar (NZD) softened in overnight trade as yesterday’s risk-fuelled rally lost momentum.