US Dollar (USD) Turbulent after Strong Jobs Report
The US Dollar (USD) spiked on Friday afternoon after a shockingly strong non-farm payrolls report boosted bets on another Federal Reserve rate hike.
However, USD abruptly relinquished these gains, with the currency seeming to fall afoul of some profit-taking.
Conflict in the Middle East has sparked risk aversion among investors this week, which may see the safe-haven US Dollar climb. Three Fed speeches this afternoon could also affect the ‘Greenback’, with any hawkish hints potentially boosting USD.
Pound (GBP) Firms despite Absence of Data
The Pound (GBP) managed to edge higher against its weaker peers on Friday, despite a continued lack of UK economic data.
A slight uptick in Bank of England (BoE) rate hike bets may have supported Sterling, following recent BoE comments, an upward revision to the UK services PMI, and hot US jobs data.
UK data is in short supply today and through the first part of the week, which could lead to mixed trade in GBP.
Euro (EUR) Wavers following Lacklustre German Data
The Euro (EUR) fluctuated on Friday following mixed German factory orders data.
Although orders recovered an impressive 3.9% in August after July’s huge 11.3% contraction, many analysts warned that the Eurozone’s largest economy still faces a recession.
This morning, EUR could face headwinds following a fifth consecutive contraction in German industrial production.
Canadian Dollar (CAD) Rocked by USD Volatility
The Canadian Dollar (CAD) was rocked by its positive correlation with the US Dollar on Friday, as the turbulence hitting USD triggered similar movement in CAD.
Amid a lack of Canadian economic data today, oil price dynamics could drive the commodity-linked ‘Loonie’.
Australian Dollar (AUD) Wavers Lower amid Souring Mood
The Australian Dollar (AUD) fluctuated overnight, moving lower overall against its stronger rivals amid a risk-averse market mood.
New Zealand Dollar (NZD) Finds Success amid Choppy Trade
The New Zealand Dollar (NZD) also saw volatility last night, although the ‘Kiwi’ fared better than the ‘Aussie’ by managing to climb against some of its weaker peers.