Euro (EUR) Reverses Course following Cooler Inflation
The Euro (EUR) initially ticked higher yesterday, with the single currency boosted by its negative correlation with a weakening US Dollar (USD).
However, the Euro trimmed its gains as the session went on. A USD rebound dented EUR, while a pullback in European Central Bank (ECB) rate hike bets following cooler inflation figures may also have weighed on the common currency.
Looking ahead, a lack of Eurozone data may see EUR trade on its USD correlation today.
Pound (GBP) Directionless amid Data Lull
The Pound (GBP) traded without a clear direction yesterday as a lack of UK economic data left the currency rudderless.
Sterling was also muted ahead of the upcoming Bank of England (BoE) interest rate decision as investors refrained from placing any aggressive bets.
Today, the UK’s final manufacturing PMI is the only data release. Barring a deviation from the preliminary results, it may not prompt much movement.
US Dollar (USD) Rebounds as Risk Appetite Wanes
The safe-haven US Dollar fell during yesterday’s European session amid an initially risk-on market mood.
Sentiment then soured, allowing USD to make a strong comeback through the American trading hours.
High-impact jobs and manufacturing data releases are out for the US today. But the real focus is on the Federal Reserve decision. Could a hawkish hold see USD climb?
Canadian Dollar (CAD) Edges Lower as Oil Prices Wobble
The crude-linked Canadian Dollar (CAD) softened against its stronger rivals yesterday as oil prices wavered slightly lower.
Canada’s manufacturing PMI later today could prompt further losses for CAD, with economists expecting to see a deepening contraction in the sector.
Australian Dollar (AUD) Mixed despite Weak Chinese Data
The Australian Dollar (AUD) moved without a clear direction last night as downbeat data from China was offset by risk-positive trade.
New Zealand Dollar (NZD) Falls as Unemployment Rises
The New Zealand Dollar (NZD) fell sharply last night as a weak employment report and the troubling Chinese PMI both weighed on the Kiwi’.