US Dollar (USD) Soars amid Global Economic Fears
The safe-haven US Dollar (USD) climbed to ten-month highs yesterday as risk aversion swept through markets.
Fears around elevated global borrowing costs, paired with anxiety over China’s ailing property sector and a potential government shutdown in the US, saw fearful investors flock to the safer US Dollar.
This afternoon, an expected decline in US consumer confidence could dent the ‘Greenback’.
Pound (GBP) Remains Weak amid Souring Sentiment
The Pound (GBP) continued to weaken yesterday as a gloomy mood in markets weighed on the increasingly risk-sensitive UK currency.
Mixed retail sales data failed to lend Sterling much support. Although new data from the Confederation of British Industry (CBI) beat forecasts, it still showed a notable decline in retail trade.
British economic data is in short supply today, which could leave Sterling to languish near recent lows.
Euro (EUR) Falls amid Muddled ECB Messaging
The Euro (EUR) slid yesterday as investors responded to a flurry of speeches from European Central Bank (ECB) policymakers.
Although some officials sounded more hawkish than others, there were plenty of indications that interest rates may have peaked. This pulled the Euro lower.
Looking forward, a lack of Eurozone data today could leave the common currency to trade without a clear direction.
Canadian Dollar (CAD) Supported by Strong USD
The Canadian Dollar (CAD) gained ground yesterday, with CAD enjoying its positive correlation with USD. Strength in oil prices also underpinned the commodity-linked ‘Loonie’.
With no market-moving Canadian data due out today, crude prices could continue to drive CAD exchange rates.
Australian Dollar (AUD) Falls amid Downbeat Trade
The Australian Dollar (AUD) weakened overnight as a downbeat mood drained support for the risk-sensitive ‘Aussie’.
New Zealand Dollar (NZD) Softens amid Investor Angst
The New Zealand Dollar (NZD) also stumbled against many of its rivals last night amid the bearish impulse in markets.