Euro (EUR) Climbs amid Hawkish ECB Comments
A rise in German business morale lent the Euro (EUR) some support early in yesterday’s session.
Hawkish comments from European Central Bank (ECB) policymaker Pierre Wunsch further boosted EUR. Wunsch said that the bank wanted to see wage growth and core inflation easing before it considered pausing its tightening cycle. The Euro strengthened in response.
Amid a lack of noteworthy Eurozone data today, EUR exchange rates could struggle for a clear direction.
Pound (GBP) Muted in Absence of Data
The Pound (GBP) traded in a narrow range yesterday as a lack of data left the UK currency without much of an impetus.
Expectations that the Bank of England (BoE) will raise interest rates again next month lent the Pound some support, keeping it afloat against many of its peers.
Later this morning, some downbeat data from the Confederation of British Industry (CBI) could hurt Sterling.
US Dollar (USD) Dips as Treasury Yields Fall
The US Dollar (USD) declined yesterday, despite a downbeat market mood, amid a sharp pullback in US Treasury bond yields.
The yield on the 10-year Treasury note dropped to a one-week low, which dragged on USD exchange rates.
Looking ahead, the latest US consumer confidence figures could affect the ‘Greenback’. The currency could slip if household morale declined this month.
Canadian Dollar (CAD) Rangebound in Absence of Data
The Canadian Dollar (CAD) moved mostly sideways yesterday amid a lack of data. CAD’s positive correlation with USD pressured the currency, while a rise in oil prices propped up the commodity-linked ‘Loonie’.
The currency’s correlation to oil prices and the US Dollar could continue to drive CAD exchange rates today, as there is once again a lack of Canadian economic data.
Australian Dollar (AUD) Weakens amid Risk Aversion
The Australian Dollar (AUD) dipped overnight, with the risk-sensitive currency losing ground amid a downbeat market mood.
New Zealand Dollar (NZD) Shored Up by Rising Bond Yields
The New Zealand Dollar (NZD) held steady in overnight trade, despite the risk-off tone in markets. An uptick in New Zealand government bond yields may have kept the ‘Kiwi’ from falling.