Euro (EUR) Rises on Positive German Data
The Euro (EUR) firmed yesterday after a stronger-than-expected recovery in German factory orders.
Orders grew by 0.8% month on month in October, beating forecasts of 0.1%. This lifted hopes that the coming recession in Germany may be milder than expected, which in turn boosted the Euro.
After German industrial production posted a smaller-than-expected contraction this morning, attention now turns to the third estimate for the Eurozone’s GDP growth rate. Could a revision prompt movement in EUR?
Pound (GBP) Finds Gains despite Choppy Trade
The Pound (GBP) fluctuated yesterday as volatility hit the markets, with Sterling managing to trend higher overall.
The upside came amid a slight dip in UK food inflation, which may have raised hopes about an improvement in the cost-of-living crisis.
UK economic data remains thin on the ground today, so Sterling may be vulnerable to more volatility.
US Dollar (USD) Slips and Strengthens as Risk Appetite Wavers
An improving market mood dented the safe-haven US Dollar’s (USD) appeal yesterday morning, causing USD to initially dip.
However, the market mood soured as the American session got underway, helping the ‘Greenback’ recover.
With no notable US data due out today, risk appetite remains the focus for USD investors. In addition, with the Federal Reserve decision in a week’s time and markets unsure how aggressively the US central bank will act, the ‘Greenback’ could wobble.
Canadian Dollar (CAD) Slips as Crude Prices Soften
The Canadian Dollar (CAD) declined yesterday as falling oil prices dragged the crude-linked ‘Loonie’ lower.
This afternoon, the Bank of Canada’s (BoC) interest rate decision is in the spotlight. Will the BoC hike rates by 50bps, as expected, or opt for a smaller 25bps rise?
Australian Dollar (AUD) Stumbles following Weak Data
The Australian Dollar (AUD) wavered lower overnight as Australia’s services PMI and third-quarter GDP growth rate both printed below forecasts.
New Zealand Dollar (NZD) Rangebound amid Muted Trade
The New Zealand Dollar (NZD) wobbled in a narrow range last night amid a lack of trading impetus.