Euro (EUR) Rises amid Risk-Off Mood
The Euro (EUR) managed to firm against its riskier counterparts yesterday, while trading sideways elsewhere.
A cautious market mood lent the safer single currency some support. Later in the session, a downturn in the US Dollar (USD) also aided EUR.
Coming up, a forecast decline in German economic sentiment could create headwinds for the Euro this morning.
US Dollar (USD) Trims Safe-Haven Gains
The US Dollar initially gained ground yesterday, with the safe-haven currency enjoying the bearish market mood.
However, USD pared its gains in the latter part of the session as a pullback in US Treasury yields applied pressure to the ‘Greenback’.
Turning to today’s session, a forecast improvement in economic optimism this afternoon could boost the US Dollar.
Pound (GBP) Softens in Absence of Data
The Pound (GBP) weakened on Monday as a lack of UK economic data left Sterling vulnerable to a souring market mood.
GBP investors were also likely hesitant to bet on the Pound ahead of today’s vital labour market report.
This morning’s data revealed stronger-than-expected wage growth, which boosted Bank of England (BoE) bets and lifted the Pound. However, a surprise rise in the UK jobless rate could stifle GBP’s upside potential.
Canadian Dollar (CAD) Buoyed by BoC Bets
The Canadian Dollar (CAD) found modest success against its weaker peers yesterday as investors bet on another Bank of Canada (BoC) interest rate rise later this week.
BoC bets could continue to provide CAD with some support today. Otherwise, oil price movements could impact the crude-linked ‘Loonie’.
Australian Dollar (AUD) Wobbles despite Positive Data
While the Australian Dollar (AUD) enjoyed a slight upside overnight following upbeat consumer confidence data, the ‘Aussie’ was unable to sustain its gains.
New Zealand Dollar (NZD) Stumbles amid Lack of Data
Likewise, the New Zealand Dollar (NZD) found some initial success amid an upbeat market mood but started declining as trade progressed. A lack of New Zealand data left the ‘Kiwi’ vulnerable to losses.