US Dollar (USD) Continues to Hit New Highs
The US Dollar (USD) struck a fresh ten-month high yesterday as rising US Treasury yields and a risk-off mood boosted the safe-haven currency.
In the afternoon, the latest JOLTs job openings figure beat forecasts, pointing to ongoing strength in the American labour market. This kept USD afloat through to the end of trade.
Later today, two US releases could drive movement: the ADP employment change figure and the ISM services PMI. If these reports also suggest the US economy remains resilient, the ‘Greenback’ could hit fresh highs.
Pound (GBP) Mixed as Lack of Data Continues
The Pound (GBP) continued to trade without a clear directional bias during yesterday’s session as an ongoing lack of UK economic data left it rudderless.
In the absence of any fundamental drivers of movement, the market mood impacted GBP. Sterling slipped against its safer peers while rising against riskier ones.
This morning, GBP investors finally have some UK data to go by. However, the final services PMI could dent the Pound if it confirms a troubling contraction in the sector.
Euro (EUR) Undermined by USD Correlation
The Euro (EUR) initially ticked higher on the back of unexpectedly hawkish comments from European Central Bank (ECB) Chief Economist Philip Lane.
However, EUR struggled to sustain these gains as the currency came under pressure from its negative correlation with the US Dollar.
Today brings multiple Eurozone data releases, including the final services PMI, retail sales, and PPI. Could mixed results create choppy trade for the Euro?
Canadian Dollar (CAD) Choppy as Oil Prices Fluctuate
Volatile oil prices impacted the commodity-linked Canadian Dollar (CAD) during yesterday’s session, with the currency struggling to find a clear trajectory amid the turbulence.
As Canadian data remains in short supply today, oil price dynamics could continue to drive the ‘Loonie’. Could a decline in crude drag CAD lower?
Australian Dollar (AUD) Uninspired by Upbeat Data
The Australian Dollar (AUD) struggled to push higher last night despite stronger-than-expected Australian data. The Reserve Bank of Australia’s (RBA) dovish rate decision and a risk-off mood kept AUD subdued.
New Zealand Dollar (NZD) Drops on RBNZ Inaction
The New Zealand Dollar (NZD) fell sharply last night after the Reserve Bank of New Zealand (RBNZ) left interest rates unchanged for the third consecutive meeting.