Euro (EUR) Slides on Poor German Data
A larger-than-forecast fall in German business morale dented the Euro (EUR) yesterday.
Germany’s business climate index hit an eight-month low, amid faltering confidence in the Eurozone’s largest economy.
Eurozone data is in short supply today, which could leave the single currency vulnerable to losses.
Pound (GBP) Finds Some Success on Positive CBI Data
The Pound (GBP) managed to rise against its weaker peers yesterday, as better-than-forecast data from the Confederation of British Industry (CBI) offered GBP investors some hope.
An upbeat market mood also aided Sterling, as the UK currency has become increasingly risk-sensitive in recent years.
Looking at today’s session, a lack of British economic data could leave Sterling to trade without a clear direction.
US Dollar (USD) Fights Losses amid Upbeat Mood
The safe-haven US Dollar (USD) faced headwinds yesterday amid a risk-on market mood, although it managed to resist steeper losses as hesitancy ahead of the Federal Reserve’s interest rate decision tonight seemed to limit the currency’s movements.
A larger-than-forecast rise in US consumer confidence in the afternoon failed to support USD, as it instead further cheered markets.
The ‘Greenback’ could be muted today as markets brace for the Fed decision. If the US central bank strikes a more cautious tone tonight, USD could stumble.
Canadian Dollar (CAD) Slips as Oil Prices Waver
The Canadian Dollar (CAD) trended lower yesterday as volatility in the oil market dented demand for the crude-linked ‘Loonie’.
Oil prices could continue influencing the ‘Loonie’ through today’s European session, while the Bank of Canada’s (BoC) meeting minutes in the evening may drive more movement. Could hints of further rate hikes boost CAD?
Australian Dollar (AUD) Tumbles as Inflation Cools
The Australian Dollar (AUD) slumped overnight after Australian inflation cooled more than forecast, dampening Reserve Bank of Australia (RBA) interest rate hike bets.
New Zealand Dollar (NZD) Dented by AUD Correlation
The New Zealand Dollar (NZD) also stumbled last night, due to its positive correlation with the Australian Dollar. However, the ‘Kiwi’ managed to claw back some of these losses.