US Dollar (USD) Firms amid Risk-Off Trade
The US Dollar (USD) climbed yesterday as a gloomy market mood boosted the safe-haven currency’s appeal.
However, expectations that the Federal Reserve will pause its current hiking cycle next week kept a firm lid on the ‘Greenback’.
Turning to today’s session, a lack of notable American data could leave USD to trade on market risk sentiment. If markets remain bearish, the US Dollar could gain further ground.
Pound (GBP) Weakens amid Thin Trading Conditions
The Pound (GBP) stumbled yesterday, with the UK currency lacking support amid a scarcity of British economic data.
A bearish turn in markets added to GBP’s woes as investors avoided the increasingly risk-sensitive Pound.
The UK data calendar is thin again today, potentially leaving Sterling exposed to further losses.
Euro (EUR) Slips following Weak Eurozone Data
The Euro (EUR) ticked lower during Tuesday’s trading session following disappointing Eurozone economic data.
German factory orders unexpectedly contracted in April, Eurozone retail sales stagnated, and consumer inflation expectations eased, denting European Central Bank (ECB) interest rate rise bets.
This morning, lacklustre German industrial production data has led to limited EUR movement. A speech from ECB Vice-President Luis de Guindos could also affect the single currency today. Could any hawkish hints revive the Euro?
Canadian Dollar (CAD) Climbs Ahead of BoC Decision
The Canadian Dollar (CAD) gained ground yesterday, as markets began pricing in the possibility of another Bank of Canada (BoC) interest rate rise in the coming months, ahead of this afternoon’s decision.
Markets expect the BoC to leave interest rates on hold, as they have done since January. However, any hints that the bank could raise rates again soon could see CAD climb.
Australian Dollar (AUD) Holds Post-RBA Gains
The Australian Dollar (AUD) held strong overnight, following yesterday’s rally inspired by a surprise rate rise from the Reserve Bank of Australia (RBA). However, weaker Australian GDP data prevented the ‘Aussie’ from making further gains.
New Zealand Dollar (NZD) Softens as Risk Appetite Wanes
The risk-sensitive New Zealand Dollar (NZD) edged lower during last night’s trade, as poor Chinese trade data soured market sentiment.