Pound (GBP) Firms amid Increased Risk Appetite
The Pound (GBP) gained against many of its rivals yesterday as investors shrugged off Omicron concerns amid a risk-on market mood.
Sterling may also have benefitted from an announcement from the Chancellor Rishi Sunak who unveiled a £1bn support package for some businesses hit by the new wave of the virus.
The UK’s finalised GDP growth rate was revised lower this morning, which may weigh on Sterling. Later on, Omicron news is likely to drive most movement in the Pound.
Euro (EUR) Falls on Poor German Data
The Euro (EUR) stumbled through yesterday’s session after Germany’s consumer confidence indicator fell far more than expected.
In addition, rising Covid cases across Europe prompted fears of fresh restrictions, which also dented the single currency.
With no European data out today, EUR investors will be paying close attention to the latest coronavirus developments.
US Dollar (USD) Softens amid Upbeat Market Mood
The US Dollar (USD) retreated against most of its rivals yesterday as a bullish market mood dampened demand for the safe-haven ‘Greenback’.
In addition, Monday’s news that Joe Biden’s Build Back Better scheme may not get through Congress also acted as a headwind, with Goldman Sachs lowering its GDP growth forecast for 2022 in response.
Looking ahead, the final US GDP growth rate data could cause some movement if it surprises markets.
Canadian Dollar (CAD) Firms as Retail Sales Impress
The Canadian Dollar (CAD) strengthened on Tuesday. Bolstered by a stronger-than-expected rebound in domestic retail sales growth in October, as well as being underpinned by rising oil prices.
Australian Dollar (AUD) Rocked by Omicron Uncertainty
The Australian Dollar (AUD) traded in a wide range overnight, as uncertainty over Australia’s Omicron situation saw the currency waver after a snap cabinet meeting was called to discuss how to handle the new variant.
New Zealand Dollar (NZD) Fluctuates amid Mixed Market Risk Appetite
The New Zealand Dollar (NZD) shared a similar fate to the ‘Aussie’ during today’s Asian trading session as fluctuating market risk appetite infused the ‘Kiwi’ with some volatility.