Pound (GBP) Firms amid Upbeat UK Mood
As last week’s trade came to a close the Pound (GBP) found some success, with a more upbeat market mood supporting the increasingly risk-sensitive UK currency.
In addition, the Treasury unveiled plans to overhaul regulations for the financial services industry. Hopes that this could help boost the British economy seemed to support Sterling.
This morning UK GDP exceeded forecasts, with the economy growing 0.5% in October. This could lift Sterling, although recession worries may keep a lid on how high the Pound can climb.
Euro (EUR) Slips amid Lack of Support
The Euro (EUR) tumbled during Friday’s trade as an increased appetite for risk dampened the appeal of the safer single currency.
EUR exchange rates also faced headwinds from ongoing fears about the Russia-Ukraine war.
Looking ahead, EUR could be subdued today amid a lack of data. Risk appetite and the Euro’s negative trading relationship with the US Dollar (USD) could affect the common currency.
US Dollar (USD) Wavers Lower amid Risk-On Trade
The safe-haven US Dollar fluctuated on Friday, heading lower overall, as the market mood grew increasingly upbeat.
The latest US PPI data added to the volatility. Although PPI exceeded forecasts, it still showed a marked easing of price pressures year on year. This added to the uncertainty over the Federal Reserve’s upcoming interest rate decision.
With no notable US data out today, the ‘Greenback’ could trade on risk appetite.
Canadian Dollar (CAD) Slides as Oil Prices Remain Low
After a bruising week, the Canadian Dollar (CAD) ended the week on a sour note, dropping to multi-month lows against some of its peers. The downside in the crude-linked ‘Loonie’ came as oil prices ended the week almost 10% lower.
Crude prices could continue to drive CAD through today’s session. Later tonight, a speech from Bank of Canada (BoC) Governor Tiff Macklem could impact the ‘Loonie’.
Australian Dollar (AUD) Declines as Market Mood Sours
The Australian Dollar (AUD) dropped overnight as a souring market mood weighed on the risk-sensitive ‘Aussie’.
New Zealand Dollar (NZD) Falls amid Cautious Trade
Likewise, the risky New Zealand Dollar (NZD) softened in overnight trade as risk appetite faded.