US Dollar (USD) Catapulted Higher by Safe-Haven Flows
Safe-haven flows propelled the US Dollar (USD) higher on Tuesday, as a sour market mood clouded the session.
However, comments from Federal Reserve officials may have kept this strength in check. The consensus was that any future policy decisions will be primarily data driven.
USD investors are likely to shift their focus to tomorrow’s inflation data, due to a light calendar during today’s session.
Pound (GBP) Wavers amid Downbeat Retail Data
Due to downbeat data from the UK retail sector, the Pound (GBP) wavered during Tuesday’s session.
While risk-averse trade weighed on some currencies, allowing GBP to strengthen against them, the bleak outlook for the vital sector drained sentiment.
Owing to a light data calendar, the Pound may be vulnerable to shifts in risk appetite. If bearish trade clouds the session, GBP could weaken.
Euro (EUR) Mixed amid Lack of Data
Trade in the Euro (EUR) was mixed yesterday. While the common currency managed to gain ground against riskier assets, it remained muted against the US Dollar (USD).
The deteriorating market mood served to bring some support to EUR, but the lack of impactful data provided little further impetus.
Due to the continued absence of data, the common currency could struggle to find support today.
Canadian Dollar (CAD) Stumbles on Oil Price Falls
Slumping oil prices undercut the crude-linked Canadian Dollar (CAD) yesterday, prompting losses against most of its peers.
Oil price volatility will likely continue to act as the core catalyst of movement for the ‘Loonie’ today. Could a recovery boost CAD?
Australian Dollar (AUD) Wavers Following Chinese Inflation Data
The Australian Dollar (AUD) wavered overnight as Chinese deflation fears undermined a wider recovery in market risk appetite.
New Zealand Dollar (NZD) Firms amid Rising Inflation Expectations
The New Zealand Dollar (NZD) trended higher overnight on Tuesday, with the ‘Kiwi’ drawing support from an uptick in domestic inflation expectations.