Euro (EUR) Finds Success as German Economy Less Weak than Feared
The Euro (EUR) firmed against its weaker peers yesterday after German GDP beat forecasts, printing at -0.1% in the third quarter rather than the anticipated -0.3%.
EUR also enjoyed its strong negative correlation with a weaker US Dollar (USD), although a sharper-than-expected cooldown in German inflation dampened the common currency’s upside.
The German data releases were mostly a precursor to today’s Eurozone releases. Could stagnant GDP and disinflation weigh on EUR exchange rates?
Pound (GBP) Subdued amid Lack of Data
The Pound (GBP) was muted on Monday as a lack of data left the UK currency struggling to attract support.
Concerns about the health of the British economy persisted, applying some pressure to the Pound.
GBP data is still in short supply today, so Sterling may remain subdued.
US Dollar (USD) Weakens amid Risk-Positive Trade
The US Dollar stumbled out of the gate yesterday as a risk-on mood dented demand for the safe-haven ‘Greenback’.
In addition, expectations that the Federal Reserve will leave interest rates unchanged at its upcoming meeting subdued the American currency.
Later today, an expected decline in US consumer confidence could weigh on USD exchange rates.
Canadian Dollar (CAD) Slips as Oil Prices Decline
The crude-linked Canadian Dollar (CAD) faced selling pressure yesterday as a downtick in oil prices dented the ‘Loonie’.
Looking ahead, could lacklustre Canadian GDP data today see CAD suffer further losses?
Australian Dollar (AUD) Falls following Downbeat Chinese Data
The Australian Dollar (AUD) softened overnight after China’s latest PMI data missed forecasts. As AUD often trades as a proxy for the Chinese economy, the ‘Aussie’ weakened in response.
New Zealand Dollar (NZD) Shored Up by Strong Business Confidence
The New Zealand Dollar (NZD) fluctuated overnight. A downbeat mood dented the risk-sensitive ‘Kiwi’ while a stronger-than-forecast business confidence reading cushioned the currency.