Pound (GBP) Edges Up as Market Mood Brightens
The Pound (GBP) found limited success in yesterday’s trade as an upbeat market mood saw Sterling outperform its safer counterparts while posting losses against riskier rivals.
GBP’s upside also came as traders repositioned ahead of the Bank of England’s (BoE) policy decision on Thursday. Markets expect the central bank to announce a second consecutive rate hike.
With no UK economic data out during today’s session, domestic politics, risk sentiment and BoE expectations may drive GBP exchange rates.
Euro (EUR) Slips amid Risk-On Trade
The Euro (EUR) fell against many of its peers yesterday as markets retained a risk-on tilt, which saw waning support for the safer single currency.
Positive employment data may have limited EUR’s losses. The unemployment rates in both Germany and the wider Eurozone fell, beating expectations.
The Eurozone CPI is the focus for EUR investors today. An expected drop in inflation would vindicate the European Central Bank’s (ECB) approach to monetary policy. However, this may cause the Euro to slip ahead of the ECB’s meeting on Thursday.
US Dollar (USD) Subdued as Market Sentiment Remains Upbeat
The US Dollar (USD) softened through yesterday’s session as a moderately risk-on market mood saw demand for the safe-haven currency dwindle.
Mixed US data in the afternoon seemed to have little effect on USD. JOLTs job openings unexpectedly rose while the ISM manufacturing PMI edged lower.
The latest ADP employment change figure could influence the ‘Greenback’ today. Could another above-forecast reading bolster USD?
Canadian Dollar (CAD) Muted amid Oil Volatility
The commodity-linked Canadian Dollar (CAD) slipped against many of its peers yesterday, despite better-than-expected Canadian GDP, amid some volatility in the oil market.
A speech from Bank of Canada (BoC) Deputy Governor Toni Gravelle could influence CAD exchange rates this afternoon.
Australian Dollar (AUD) Rangebound as Rally Wears Off
The Australian Dollar (AUD) wavered in a narrow range overnight as AUD’s risk-on rally reached its peak.
New Zealand Dollar (NZD) Edges Lower on Mixed Jobs Data
The New Zealand Dollar (NZD) softened in overnight trade amid mixed employment data. While the unemployment rate unexpectedly dropped, so did the participation rate.