Euro Rallies on Hawkish ECB Comments

Euro (EUR) Rallies on ECB Comments

The Euro (EUR) trended broadly higher on Thursday. Supported by some hawkish comments from European Central Bank (ECB) Vice President Luis de Guindos.

De Guindos stoked expectations for the next ECB interest rate decision as he claimed the bank should prioritise tackling inflation over concerns over growth.

Coming up, these ECB rate hike bets could be reinforced by the latest Eurozone CPI release. If August’s finalised figures confirm inflation in the bloc climbed to a new record high. 

Pound (GBP) Dented by Gloomy Mood

The Pound (GBP) weakened yesterday, with investors favouring Sterling’s stronger peers amid a drop in market risk appetite.

This downturn in Sterling also came amid a lull in domestic economic data and a subdued mood in the UK amid the ongoing mourning period.

The release of the UK’s latest retail sales figures could place additional pressure on the Pound today. After data published earlier this morning reported a sizable contraction in sales growth last month.

US Dollar (USD) Buoyed by Upbeat Retail Sales Figures

The US Dollar (USD) also strengthened during yesterday’s European trading session. USD investors welcomed a stronger-than-expected US retail sales print.

However, the upside in the US Dollar was tempered somewhat by the subsequent release of the latest US industrial production figures. After a shock contraction in factory output last month.

Coming up, will the University of Michigan’s latest US consumer sentiment index help to bolster USD exchange rates today if it reports another improvement in consumer morale this month?

Canadian Dollar (CAD) Undermined by Oil Price Slump

The Canadian Dollar (CAD) fell in tandem with oil prices on Thursday. Crude prices fell amid fears that demand could fall off at the end of the year as much of the world is plunged in a recession.

Australian Dollar (AUD) Buoyed by Upbeat Chinese Data

The Australian Dollar (AUD) trended higher overnight on Thursday. Upbeat Chinese economic data offering some support to the ‘Aussie’, before a cautious mood began to erase some of these gains as the European trading session neared.

New Zealand Dollar (NZD) Finds Fleeting Gains

The New Zealand Dollar (NZD) also briefly strengthened in overnight trade, lifted by the positive Chinese data and the currency’s positive correlation with AUD.

Matthew Andrews

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