US Dollar (USD) Stumbles amid Easing Inflation
The safe-haven US Dollar (USD) wobbled lower on Friday, as a risk-on mood in the wake of Thursday’s strong GDP data pressured the currency.
In addition, the latest core PCE price index – the Federal Reserve’s preferred gauge of inflation – showed that price pressures eased last month, thereby dampening Fed bets.
Market-moving US data is thin on the ground today, so risk appetite could drive USD exchange rates.
Pound (GBP) Mixed amid Lack of Data
The Pound (GBP) traded without a clear direction on Friday as a lack of UK data left the currency rudderless.
Despite weak UK economic reports throughout the week, Sterling did find some gains against its weaker peers.
With no notable British data due out today, GBP exchange rates may struggle for a clear trajectory once again.
Euro (EUR) Subdued in the Wake of ECB Decision
The Euro (EUR) remained on the defensive at the end of last week, with investors still digesting the European Central Bank’s (ECB) dovish interest rate decision.
The common currency did enjoy some limited support thanks to its negative correlation with a weaker US Dollar.
Turning to today, German inflation and third-quarter GDP growth are due out. Easing inflation and a contracting economy could weigh on EUR.
Canadian Dollar (CAD) Falls in Tandem with Oil
The crude-linked Canadian Dollar (CAD) slumped on Friday as a downward correction in oil prices dragged CAD lower.
Amid an absence of Canadian economic data today, oil price dynamics may continue to drive the crude-linked ‘Loonie’.
Australian Dollar (AUD) Firms following Strong Sales Data
The Australian Dollar (AUD) ticked higher last night after Australian retail sales beat forecasts. August’s sales growth was revised up from 0.2% to 0.3%, while September exceeded expectations of 0.3% to print at 0.9%.
New Zealand Dollar (NZD) Enjoys AUD Correlation
The New Zealand Dollar (NZD) also moved higher overnight, with the ‘Kiwi’ seemingly supported by its positive correlation with the ‘Aussie’.