Pound (GBP) Wavers following UK Jobs Report
The Pound (GBP) wobbled yesterday as investors digested a mixed UK labour market report.
Wage growth beat forecasts, prompting increased expectations for another Bank of England (BoE) interest rate hike next month. However, an unexpected rise in UK unemployment spooked GBP investors.
The UK consumer price index exceeded forecasts this morning, with headline inflation remaining in double digits. This has cemented expectations for another BoE rate rise next month, thereby boosting Sterling.
Euro (EUR) Subdued following Poor German Data
A surprise decline in German investor morale dented the Euro (EUR) yesterday. The country’s economic sentiment index fell from 13 to 4.1, rather than rising to 15.3.
However, the single currency resisted steeper losses thanks to its negative correlation with the US Dollar (USD), which weakened.
Turning to today, EUR exchange rates could decline. The Eurozone’s final inflation rate reading is forecast to confirm a sharp cooldown last month.
US Dollar (USD) Ticks Lower amid Cheery Trade
The US Dollar initially stumbled yesterday as an upbeat market mood put some pressure on the safe-haven currency.
However, sentiment began to sour as the session progressed, preventing further losses for the ‘Greenback’.
With no notable US data due out today, risk appetite may continue to drive USD exchange rates. Will a downbeat mood see the US Dollar climb?
Canadian Dollar (CAD) Slips as Inflation Softens
A decline in Canada’s inflation rate dented the Canadian Dollar (CAD) yesterday.
So far in today’s session, the commodity-linked ‘Loonie’ has come under pressure from falling oil prices. Will this downtrend continue?
Australian Dollar (AUD) Falls in Cautious Trade
The Australian Dollar (AUD) wavered lower overnight as a downbeat tone among investors sapped the risk-sensitive currency’s appeal.
New Zealand Dollar (NZD) Stumbles amid Risk Aversion
Likewise, the risky New Zealand Dollar (NZD) suffered modest losses last night as the market mood soured.