Pound (GBP) Hits Ceiling as Investors Cash In
The Pound (GBP) started yesterday’s session on the front foot, extending its gains from Friday, with an upbeat mood seeming to support the increasingly risk-sensitive currency.
However, GBP trimmed its gains in the afternoon after it seemed to suffer some profit-taking.
Turning to today, UK economic data is in short supply. As a result, Sterling may face mixed movement.
Euro (EUR) Edges Higher as German Data Beats Forecasts
The Euro (EUR) found success against its weaker peers yesterday after German factory orders for September unexpectedly expanded by 0.2%.
The common currency’s upside was limited, however, as August’s 3.9% growth was revised sharply lower to 1.9%.
This morning, the latest German industrial production data printed below expectations to show a larger-than-forecast contraction in output in September. This could weigh on EUR as the session unfolds.
US Dollar (USD) Pressured in Wake of Payrolls Data
The US Dollar (USD) was initially on the defensive as this week’s session began, with Friday’s weak non-farm payrolls data continuing to weigh on USD.
The ‘Greenback’ was then able to regain ground later in the session after seemingly having entered oversold conditions, while an uptick in US Treasury bond yields also aided USD.
A number of Federal Reserve policymakers are due to speak today. Could dovish comments put fresh pressure on the US Dollar?
Canadian Dollar (CAD) Slips as Oil Prices Retreat
The Canadian Dollar (CAD) softened yesterday as a drop in oil prices pressured the crude-linked ‘Loonie’.
Today, Canada’s balance of trade report for September could influence CAD. Will a stronger reading see the Canadian Dollar climb?
Australian Dollar (AUD) Falls despite RBA Rate Hike
The Australian Dollar (AUD) declined overnight, despite the Reserve Bank of Australia (RBA) delivering another interest rate hike. A sharp decline in Chinese exports seemed to put pressure on the ‘Aussie’, while expectations that the RBA is now done with policy tightening also dented AUD.
New Zealand Dollar (NZD) Declines amid Souring Mood
The New Zealand Dollar (NZD) also fell overnight as the weaker Chinese data dampened the market mood, thereby denting the risk-sensitive ‘Kiwi’.