Pound (GBP) Stumbles following Labour Market Data
Below-forecast jobs data rocked the Pound (GBP) yesterday. UK unemployment unexpectedly rose while earnings growth printed below expectations.
While Sterling quickly rebounded from its worst levels, it continued to trade with modest losses through the remainder of the European session.
Bank of England (BoE) Governor Andrew Bailey is set to speak later this morning. If he reiterates that the bank expects UK inflation to decline sharply then Sterling could stumble.
Euro (EUR) Stifled by German Recession Fears
The Euro (EUR) faced headwinds at the start of yesterday’s session. Germany’s latest economic sentiment index fell more than forecast, raising fears of a recession in the Eurozone’s largest economy.
However, a gloomy market mood kept EUR afloat against its riskier peers. Upbeat employment data also provided the single currency with some support.
Turning to today, the Eurozone’s final consumer price index is due out. Any deviation from the preliminary reading could impact EUR, with the currency likely to fall if inflation shows continued signs of easing.
US Dollar (USD) Recovers amid Waning Risk Appetite
After an initial downturn, the US Dollar (USD) managed to regain ground yesterday with investors shrugging off weaker-than-forecast US retail sales data.
A souring market mood supported the safe-haven currency, with hawkish comments from the Federal Reserve’s Loretta Mester also aiding USD.
Market-moving US data is in short supply today. As a result, risk appetite could drive most movement in the US Dollar. Will a continued downbeat mood continue to lift USD?
Canadian Dollar (CAD) Firms as Inflation Unexpectedly Rises
The Canadian Dollar (CAD) firmed yesterday after markets were caught off guard by a surprise uptick in inflation. Strong oil prices also buoyed the commodity-linked ‘Loonie’.
Amid today’s lack of Canadian data releases, CAD investors may take their cues from the oil markets. A drop in crude this morning could spell trouble for the Canadian Dollar.
Australian Dollar (AUD) Slips as Data Misses Forecasts
The Australian Dollar (AUD) dipped overnight after the latest wage price index missed forecasts, thereby dampening Reserve Bank of Australia (RBA) interest rate rise bets.
New Zealand Dollar (NZD) Firms despite Thin Trading Conditions
The New Zealand Dollar (NZD) managed to crawl higher during last night’s trade, despite a muted market mood and a lack of economic data.