US Dollar (USD) Buoyed by Risk-Off Mood
The US Dollar (USD) extended its recent winning streak yesterday as a prevailing risk-off market mood provided the currency with safe-haven flows.
The ‘Greenback’ also benefitted from better-than-forecast US data, after durable goods orders unexpectedly expanded in August.
This afternoon, the final second-quarter GDP figures for the US may affect USD. However, only a deviation from previous estimates is likely to cause significant movement.
Pound (GBP) Wavers amid Lack of Data
The Pound (GBP) traded in a wide range yesterday as a lack of UK economic data left Sterling struggling to find a clear trajectory.
Any gains for GBP were severely capped by recent worries about the British economy and an ongoing pullback in Bank of England (BoE) interest rate hike bets.
UK economic data remains in short supply today, which could leave the Pound to struggle to find direction once again.
Euro (EUR) Dented by Weak German Data
The Euro (EUR) stumbled yesterday following troubling German data. Consumer confidence in the Eurozone’s largest economy slipped to a six-month low, coming in even weaker than forecast.
The common currency also suffered from its strong negative correlation with the US Dollar, with the latter currency rallying through the session.
Looking forward, the Euro could face headwinds today. Weaker Eurozone economic sentiment and a sharp fall in German inflation could weigh on EUR.
Canadian Dollar (CAD) Rallies as Oil Marches Higher
The crude-linked Canadian Dollar (CAD) climbed yesterday as rallying oil prices boosted demand for the currency.
Canada’s latest wage data is due out this afternoon. Could an uptick in earnings lift CAD by boosting Bank of Canada (BoC) rate hike bets?
Australian Dollar (AUD) Firms amid Softer USD
The Australian Dollar (AUD) gained ground during overnight trade, recouping yesterday’s losses, as a pullback in USD gave the ‘Aussie’ some breathing room.
New Zealand Dollar (NZD) Rises as Commodities Rally
The New Zealand Dollar (NZD) also strengthened last night, with the resource-linked ‘Kiwi’ enjoying support amid rallying commodities prices.