Pound (GBP) Stumbles after Worrying Retail Data
The Pound (GBP) faced ongoing selling pressure yesterday following the latest data from the Confederation of British Industry (CBI).
The CBI’s distributive trades survey reported that UK retail trade slumped at its fastest pace in two years this month, adding to mounting fears about the health of the British economy.
Turning to today, UK economic data is in short supply. As a result, Sterling could be left vulnerable to market volatility.
Euro (EUR) Edges Higher amid Cautious Trade
The Euro (EUR) found mixed success yesterday, climbing against its weaker peers as a gloomy market mood lent the safer single currency some support.
However, EUR found its upside potential limited due to the Euro’s negative correlation with a strengthening US Dollar (USD).
Today, EUR investors will be awaiting a speech from European Central Bank (ECB) President Christine Lagarde this evening. Any dovish comments could dent the Euro. Until then, EUR may trade on its negative USD correlation.
US Dollar (USD) Rises as Fed Bets Creep Higher
The US Dollar rallied yesterday as hawkish comments from a former Federal Reserve policymaker and a drop in US jobless claims boosted bets on more policy tightening.
A souring market mood also supported the safe-haven ‘Greenback’, although USD found its gains capped as investors braced for today’s speech from Fed Chair Jerome Powell.
All eyes are on Powell’s speech this afternoon, which is likely to drive volatility. Will a more cautious tone see USD stumble?
Canadian Dollar’s (CAD) Gains Capped by Volatile Oil
The Canadian Dollar (CAD) rose against its weaker peers yesterday, thanks to CAD’s positive correlation with USD. However, oil volatility caused some choppy trade and led the crude-linked currency to weaken against its stronger rivals.
Today, CAD’s trading relationships with both USD and oil prices could drive most movement. The Canadian Dollar could experience some turbulence.
Australian Dollar (AUD) Wobbles in Absence of Data
The Australian Dollar (AUD) wavered overnight amid a lack of Australian data, although the risk-sensitive currency did manage to firm slightly against its weaker peers despite a cautious tone.
New Zealand Dollar (NZD) Weakens as Mood Sours
Unlike the ‘Aussie’, the New Zealand Dollar (NZD) succumbed to the risk-off market mood overnight, trending lower against most rivals.