US Dollar (USD) Slips Ahead of Inflation Data
The US Dollar (USD) weakened yesterday as investors sought to cash in on the currency’s recent strength ahead of high-impact inflation data today.
A cautiously upbeat market mood added to USD’s woes, with investors shunning the safe-haven ‘Greenback’ in favour of riskier assets.
The core PCE price index due today is the Federal Reserve’s preferred gauge of inflation. If it eases, as expected, markets could scale back Fed bets and USD could decline.
Pound (GBP) Finds Fleeting Success
The Pound (GBP) initially strengthened yesterday as falling mortgage rates helped to slightly ease anxiety around the UK’s cost-of-living crisis.
However, Sterling ceded these gains against its stronger rivals in the afternoon as a lack of data left the currency vulnerable to losses.
This morning, the UK’s final quarter-on-quarter GDP growth rate printed in line with previous estimates. With data thin on the ground for the remainder of the session, Sterling movement may be limited.
Euro (EUR) Rudderless following Mixed Data
The Euro (EUR) traded in a wide range yesterday, after a mixed economic sentiment index left the currency struggling to find a clear direction.
EUR’s negative correlation with a weaker US Dollar helped to keep the currency afloat, cushioning it from steeper losses.
Turning to today, the Eurozone’s latest consumer price index is in focus. Could cooling inflation dampen European Central Bank (ECB) interest rate hike bets, thereby pressuring EUR?
Canadian Dollar (CAD) Falls as Oil Prices Drop
The Canadian Dollar (CAD) fell yesterday as a drop in oil prices pulled the crude-linked ‘Loonie’ lower.
Today, Canada’s latest GDP data is the focus for CAD investors. Could signs of stuttering growth dent the Canadian Dollar?
Australian Dollar (AUD) Jumps as Risk Appetite Improves
The Australian Dollar (AUD) leapt higher last night as an improving mood boosted the risk-sensitive ‘Aussie’.
New Zealand Dollar (NZD) Soars amid Risk-On Mood and Upbeat Data
The New Zealand Dollar (NZD) also surged overnight, with the risk-on rally and a surprise jump in New Zealand consumer confidence catapulting the ‘Kiwi’ higher.