Pound (GBP) Wavers Lower following BoE Decision
The Pound (GBP) fluctuated during yesterday’s session as investors reacted to the Bank of England’s (BoE) interest rate decision.
While the BoE left interest rates unchanged, as expected, three policymakers voted for a rate hike. However, the bank also gave a bleak assessment of the UK’s economic outlook, which ultimately weighed on GBP.
Turning to today, the only UK data due out is the final services PMI. Any surprise results could drive GBP volatility.
Euro (EUR) Enjoys USD Correlation
The Euro (EUR) firmed yesterday, thanks to the currency’s strong negative correlation with a weakening US Dollar (USD).
However, an uptick in German unemployment seemed to limit EUR’s upside.
The Eurozone’s jobless rate is the focus for EUR investors this morning. If it holds at a record low, the single currency could climb.
US Dollar (USD) Weak following Dovish Fed Decision
The US Dollar remained on the back foot yesterday in the wake of the Federal Reserve’s interest rate decision.
Although Fed Chair Jerome Powell left the door open to another rate hike, his language was notably more dovish than it was following the Fed’s September decision. This fuelled speculation that the US central bank’s tightening cycle is over.
This afternoon, the latest non-farm payrolls report is due out. A forecast slowdown in job creation could dent USD. However, if the data beats expectations – as it did last month – then the ‘Greenback’ could rally.
Canadian Dollar (CAD) Mixed as Oil Prices Waver
The crude-linked Canadian Dollar (CAD) was mixed yesterday. Oil prices fluctuated in a narrow range, leading the ‘Loonie’ to trade without a clear direction.
Looking forward, Canada’s unemployment rate is the focus for CAD investors. An expected uptick in joblessness could weigh on the Canadian Dollar.
Australian Dollar (AUD) Flat despite Positive Retail Data
The Australian Dollar (AUD) was stuck in a narrow range overnight, unable to strengthen despite upbeat retail sales data and a cheery market mood.
New Zealand Dollar (NZD) Firms amid Upbeat Mood
The risk-sensitive New Zealand Dollar (NZD) rose during last night’s session as a bullish sentiment boosted the currency’s appeal.