Pound (GBP) Buoyed by Booster-Shot Hopes
The Pound (GBP) initially firmed yesterday as GBP investors regained some confidence thanks to the UK’s ambitious booster-jab plans.
However, Sterling lost these gains against its safer rivals in the afternoon as the rapid spread of the Omicron variant rattled markets.
The Pound could catch some bids today as the UK’s latest employment figures show a continued recovery in the labour market, though Omicron fears could limit the upside.
Euro (EUR) Firms as USD Stumbles
The Euro (EUR) fell at the start of yesterday’s session but recovered these losses in the afternoon as the currency’s negative correlation with the US Dollar (USD) caused some volatility.
EUR was able to gain steadily on its riskier rivals, however, thanks to its status as a safe-haven currency.
Looking ahead, economists expect Eurozone industrial production to have recovered in October. If so, this could bolster the Euro.
US Dollar (USD) Gains on Riskier Rivals
The US Dollar (USD) edged higher against many of its rivals yesterday as a risk-off market mood provided the safe-haven currency with a tailwind.
However, falling US Treasury yields undermined the ‘Greenback’, causing it to slip back against the Pound and the Euro during the US trading session.
With a lack of US data today, global risk sentiment may exert the most influence over the US Dollar.
Canadian Dollar (CAD) Dragged Down by Oil Prices
The Canadian Dollar (CAD) fell through yesterday’s session as declining crude prices weighed on the oil-linked ‘Loonie’.
With no impactful Canadian data out today, movements in the oil market could continue to drive CAD exchange rates.
Australian Dollar (AUD) Rebounds after Business Confidence Miss
The Australian Dollar (AUD) slumped last night after Australian business confidence unexpectedly fell. However, the risk-sensitive ‘Aussie’ was able to regain those losses amid some dip-buying and a slight improvement in market mood.
New Zealand Dollar (NZD) Fluctuates with AUD
The New Zealand Dollar (NZD) also dropped and then recovered in overnight trade, with the ‘Kiwi’ influenced by its positive correlation with the Australian Dollar.