Pound (GBP) Falls as UK Data Dents BoE Bets
The Pound (GBP) took a tumble yesterday after poor UK economic data dented Bank of England (BoE) interest rate hike bets.
The UK’s latest unemployment rate showed an uptick in joblessness. Meanwhile, October’s preliminary PMIs revealed an ongoing contraction in business activity.
Turning to today, a lack of British economic data may leave Sterling to trade without a clear direction.
Euro (EUR) Slumps following Weak PMIs
The Euro (EUR) also weakened during yesterday’s session following dire PMI results.
Both the manufacturing and services scores printed below expectations to show a deepening downturn in private sector activity. This sparked fears of a possible Eurozone recession.
This morning, Germany’s latest business climate indicator is expected to tick higher. Could this help EUR recoup some losses?
US Dollar (USD) Climbs as PMIs Beat Forecasts
The US Dollar (USD) marched higher against many of its peers yesterday, with the latest US PMI results beating forecasts.
With the services and manufacturing sectors both unexpectedly returning to growth in October, signs of resilience in the US economy boosted Federal Reserve interest rate hike bets.
Looking ahead, Fed Chair Jerome Powell is due to speak tonight. Could dovish comments dent the US Dollar?
Canadian Dollar (CAD) Regains Ground despite Weaker Oil
The crude-linked Canadian Dollar (CAD) struck multi-week lows early yesterday morning as oil prices declined. However, CAD’s positive correlation with USD helped the currency recoup losses.
Today the Bank of Canada (BoC) interest rate decision is in the spotlight. If the BoC leaves rates unchanged again, CAD could soften.
Australian Dollar (AUD) Jumps following Hotter Inflation
The Australian Dollar (AUD) leapt higher last night after Australian inflation exceeded forecasts, thereby boosting Reserve Bank of Australia (RBA) interest rate hike bets.
New Zealand Dollar (NZD) Buoyed by AUD Correlation
The New Zealand Dollar (NZD) spiked alongside AUD overnight, due to the currencies’ strong positive correlation, although the ‘Kiwi’ struggled to sustain the upside.