US Dollar (USD) Retreats from Ten-Month High
The US Dollar (USD) initially gained ground yesterday, with the prevailing risk-off impulse in markets lifting the safe-haven currency to a fresh ten-month high.
However, USD trimmed its gains as the session progressed, with the ‘Greenback’ perhaps suffering some profit-taking.
Today, the latest US durable goods orders data is due out. With forecasters anticipating another contraction in orders, USD could stumble.
Pound (GBP) Struggles amid Gloomy UK Outlook
The Pound (GBP) remained on the defensive during Tuesday’s session amid ongoing worries about the British economy.
Recent economic forecasts for the UK published by financial firms all point to long-term stagnation and a potential end to Bank of England (BoE) interest rate hikes.
UK data remains thin on the ground today, so we may see Sterling continue to trade in a narrow range near recent lows.
Euro (EUR) Rises amid Risk-Off Mood
The Euro (EUR) firmed yesterday as the safer single currency enjoyed the cautious market sentiment.
EUR also benefitted from its negative correlation with the US Dollar, which witnessed a pullback during European trading hours.
Turning to today’s session, the Euro could face pressure after Germany’s latest consumer confidence index came in worse than forecast, dropping to a six-month low.
Canadian Dollar (CAD) Weakens alongside Oil
The crude-linked Canadian Dollar (CAD) weakened yesterday as a drop in oil prices dragged the ‘Loonie’ lower.
In the ongoing absence of Canadian data today, oil prices may continue to drive CAD movement. Could a rise in oil prices lift the ‘Loonie’?
Australian Dollar (AUD) Slips despite Rising Inflation
An uptick in inflation only briefly lifted the Australian Dollar (AUD) last night, with a gloomy sentiment among investors dragging the risk-sensitive ‘Aussie’ lower.
New Zealand Dollar (NZD) Stumbles amid Risk Aversion
The New Zealand Dollar (NZD) also weakened during the overnight session as bearish trade weighed on the ‘Kiwi’.