US Dollar (USD) Wavers in Tandem with Treasury Yields
The US Dollar (USD) initially edged higher yesterday morning as an uptick in US Treasury bond yields lifted the ‘Greenback’.
However, yields pulled back as the day progressed, thereby muting USD. Meanwhile, the latest initial jobless claims figure prompted little movement.
Turning to today, the non-farm payrolls report is in the spotlight. Could signs of a cooling labour market see USD end the week on a sour note?
Pound (GBP) Rudderless amid Lack of Data
The Pound (GBP) was directionless yesterday, moving in a wide rage against its peers, as a lack of fresh UK data left the currency rudderless.
Comments from Bank of England (BoE) Deputy Governor Ben Broadbent may have prevented Sterling from falling, as he said further interest rate hikes were ‘an open question’.
The dearth of UK data continues today, so we could see the Pound end the week moving without a clear direction.
Euro (EUR) Firms despite Poor German Data
The Euro (EUR) rose during yesterday’s session, despite weak German trade data sparking fears of a recession in the Eurozone’s largest economy.
Moderately hawkish comments from European Central Bank (ECB) Vice-President Luis de Guindos may have aided EUR. The ECB’s deputy chief pushed back on rate cut bets and hinted that further hikes were possible if inflation remains stubborn.
This morning, Germany factory orders recovered more than forecast, which could lend EUR support moving forward.
Canadian Dollar (CAD) Drops as Oil Continues to Fall
The oil-sensitive Canadian Dollar (CAD) weakened yesterday as crude prices continued to decline from recent highs.
Looking ahead, an expected rise in Canadian unemployment could see the ‘Loonie’ suffer further losses today.
Australian Dollar (AUD) Muted amid Tepid Market Mood
The Australian Dollar (AUD) wavered overnight as a mixed market mood left the risk-sensitive ‘Aussie’ lacking direction.
New Zealand Dollar (NZD) Flat during Quiet Trade
The New Zealand Dollar (NZD) also traded in a narrow range last night, with the muted mood and a lack of data limiting movement.