US Dollar (USD) Rises on Strong Jobs Data
The US Dollar (USD) enjoyed significant support yesterday as an unexpected decline in jobless claims boosted the American currency.
With signs that the US labour market remains tight, markets increased their odds for more rate hikes from the Federal Reserve.
Looking forward, the ‘Greenback’ ends the week with no notable data due out. As a result, the safe-haven currency could trade on market sentiment. With the mood currently mixed, USD could see uncertain trade.
Pound (GBP) Subdued in Wake of UK Inflation
The Pound (GBP) remained on the defensive during yesterday’s session as markets continued to reprice Bank of England (BoE) interest rate rise bets following Wednesday’s softer CPI reading.
However, Sterling was able to recoup losses against some of its peers in the afternoon as a resurgent US Dollar dragged other currencies down.
This morning, UK retail sales exceeded forecasts, showing 0.7% growth rather than the 0.2% expected. This could support Sterling through today’s trade.
Euro (EUR) Wavers amid Mixed Trade
The Euro (EUR) fluctuated yesterday as a shifting market mood saw the safer single currency struggle for a clear direction.
Other factors added to the uncertain movement, including EUR’s negative correlation with a stronger US Dollar and better-than-forecast Eurozone consumer confidence data.
Turning to today, Eurozone economic data is thin on the ground. As a result, the Euro could end the week with more choppy trade.
Canadian Dollar (CAD) Rises in Tandem with USD
The Canadian Dollar (CAD) strengthened yesterday, with CAD enjoying its positive correlation with USD.
Coming up, Canada’s latest retail sales data is due out this afternoon. Will a 0.5% rise in sales boost the ‘Loonie’? Or will a sharp slowdown in sales growth weigh on CAD exchange rates?
Australian Dollar (AUD) Rangebound amid Muted Mood
The Australian Dollar (AUD) traded sideways overnight as a tepid market mood and lack of Australian data left AUD confined to a narrow range.
New Zealand Dollar (NZD) Slips in Absence of Data
The New Zealand Dollar (NZD) softened during last night’s session, as a lack of support left the ‘Kiwi’ vulnerable to losses.