US Dollar (USD) Recovers from Cooler-Than-Expected Inflation
However, as the market mood soured, the ‘Greenback’ was able to recover its losses via safe-haven flows. Furthermore, US Treasury yields recovered from weekly lows, bringing further assistance.
This afternoon, the US will publish its producer price index. Economists anticipate a 0.2% increase, which could extend the US Dollar’s recovery if it bolsters future inflation expectations.
Pound (GBP) Wavers despite Upbeat Market Mood
Middling trade clouded the Pound (GBP) on Thursday, as a lack of data prevented Sterling from capitalising on modestly bullish trade.
Furthermore, domestic economic turbulence further muted GBP rates. House prices were found to have fallen to a 14-year low as high interest rates continue to bear down on the economy.
This morning, the Pound is off to a positive start after the UK’s latest GDP figures reported a surprise expansion in the UK economy in the second quarter.
Euro (EUR) Ticks Up amid USD Weakness
The Euro (EUR) ticked higher during Thursday’s European session, because of its negative correlation with the US Dollar (USD).
While USD exchange rates rebounded later in the evening, the single currency was able to retain a good portion of its strength thanks to a risk-off market mood.
The single currency could continue to rely on dynamics with other currencies today, as the data drought continues.
Canadian Dollar (CAD) Limited by Falling Oil Prices
The commodity-linked Canadian Dollar (CAD) faced headwinds yesterday, resulting from a drop in oil prices.
If oil prices manage to recover, the ‘Loonie’ may mount a recovery during today’s session.
Australian Dollar (AUD) Muted despite Hawkish RBA Comments
New Zealand Dollar (NZD) Falls as US-China Trade Tensions Rise
The New Zealand Dollar (NZD) sank overnight, amid renewed Sino-American trade tensions.