Pound (GBP) Subdued amid Dwindling BoE Bets
The Pound (GBP) was muted yesterday, posting modest losses against many peers, as recent dovish Bank of England (BoE) comments continued to pressure the currency.
A sharp drop in UK house prices added to GBP’s woes, as analysts believe it could deter the BoE from raising interest rates much higher.
Sterling ends the week with UK economic data still thin on the ground. As a result, the Pound may see muted trade through to the end of the session.
Euro (EUR) Hit by Weak Economic Data
The Euro (EUR) stumbled during yesterday’s session, with a larger-than-expected contraction in German industrial production hitting EUR early on.
A downward revision to Eurozone GDP put further pressure on the single currency. Second-quarter growth came in at 0.1%, versus previous estimates of 0.3%.
Looking forward, a lack of Eurozone data drivers through today’s session could leave EUR to trade without a clear direction.
US Dollar (USD) Firms following Drop in Jobless Claims
The US Dollar (USD) ticked higher yesterday as a surprise drop in last week’s jobless claims boosted Federal Reserve rate hike bets.
Signs that the US labour market remains historically tight prompted markets to bet on further Fed tightening, which in turn lifted USD.
Turning to today, the US Dollar has pulled back amid a decline in Treasury yields. Could a souring market mood help the safe-haven ‘Greenback’ regain the upside as the session unfolds?
Canadian Dollar (CAD) Muted despite Upbeat Data
The Canadian Dollar (CAD) struggled to move higher yesterday, despite an unexpected recovery in Canadian business activity last month, as volatile oil prices weighed on the crude-linked currency.
This afternoon, Canada’s latest jobs report is expected to show domestic unemployment ticked higher in August, up from 5.5% to 5.6%. If the data prints true, CAD could face headwinds.
Australian Dollar (AUD) Flat amid Tepid Market Mood
The Australian Dollar (AUD) traded sideways last night amid a mixed market mood. However, this morning the ‘Aussie’ has leapt higher, without a clear catalyst for the movement.
New Zealand Dollar (NZD) Firms as USD Declines
The New Zealand Dollar (NZD) firmed overnight, with the upside likely to have come from a sharp pullback in the US Dollar.