US Dollar (USD) Slips as Market Mood Recovers
The US Dollar (USD) fell yesterday as an increased appetite for risk saw traders shun the safe-haven ‘Greenback’.
USD found no support from the latest initial jobless claims figure, which edged higher in line with market forecasts.
Looking ahead, the latest US PPI data is in focus. The ‘Greenback’ could suffer further losses if the data adds to growing evidence that American inflation is easing.
Pound (GBP) Falters in Absence of Data
The Pound (GBP) softened against some of its peers yesterday as a lack of UK economic data left Sterling vulnerable to losses.
Worries that rail strikes over the Christmas period would see a wave of cancellations hit the hospitality sector – which is already in a weakened state following the coronavirus pandemic – may have troubled GBP investors.
There are still no new economic data releases due out of the UK today. Therefore, the Pound may be muted. Next week looks set to be far busier, with the data calendar packed full of high-impact events.
Euro (EUR) Directionless amid Thin Trading Conditions
The Euro (EUR) was mixed yesterday as a recovering market mood put some pressure on the safe-haven currency.
Nevertheless, EUR was able to rise against its weaker peers and limit losses elsewhere thanks to its negative correlation with the US Dollar.
In the absence of any notable Eurozone data today, the common currency could continue to trade in relation to market sentiment and USD movement.
Canadian Dollar (CAD) Buoyed by Oil Prices and Bond Yields
The commodity-tied Canadian Dollar (CAD) firmed yesterday, lifted by a spike in oil prices and rising Canadian government bond yields.
Turning to today, there is a lack of Canadian economic data. Therefore, movements in the oil markets could impact CAD.
Australian Dollar (AUD) Subdued despite Positive Trade
The Australian Dollar (AUD) was muted in overnight trade as a positive market mood was offset by mixed Chinese inflation figures.
New Zealand Dollar (NZD) Loses Overnight Gains
The risk-sensitive New Zealand Dollar (NZD) ticked higher overnight amid a bullish tone among traders. However, the ‘Kiwi’ slipped back as the overnight session came to an end.