US Dollar (USD) Firms amid Risk-Off Trade
The US Dollar (USD) marched higher yesterday as a souring market mood revived interest in the safe-haven currency.
The ‘Greenback’ may have also entered oversold conditions, following its recent selloff, with yesterday’s gains being partially driven by a market correction.
Looking forward, a handful of Federal Reserve speeches, including from Chair Jerome Powell, could put fresh pressure on USD, if officials strike a dovish tone.
Pound (GBP) Mixed in Absence of Data
A lack of fresh UK economic data left the Pound (GBP) to trade in a wide range against its peers yesterday.
Sterling was able to firm against some of its weaker peers, despite a pullback in Bank of England (BoE) interest rate hike bets after the BoE’s Chief Economist Huw Pill hinted at summer rate cuts in a speech on Monday evening.
UK data remains in short supply today, which may leave GBP struggling to find a clear trajectory once again.
Euro (EUR) Undermined by Weak German Data
The Euro (EUR) stumbled yesterday morning after German industrial production shrank 1.4% in September, far worse than the 0.1% contraction forecast.
Nevertheless, the safer single currency fared better than its riskier rivals as a gloomy mood swept markets.
Turning to today, an expected downturn in Eurozone retail sales could weigh on EUR later this morning.
Canadian Dollar (CAD) Slips as Oil Prices Soften
The oil-linked Canadian Dollar (CAD) weakened yesterday as crude prices continued their recent decline, dragging CAD down with them.
This evening, the Bank of Canada’s (BoC) latest meeting minutes are due for publication. Confirmation of the bank’s dovish bias could dent CAD exchange rates.
Australian Dollar (AUD) Muted amid Cautious Trade
The Australian Dollar (AUD) wavered in a narrow range overnight as a cautious mood and lack of Australian data kept AUD subdued.
New Zealand Dollar (NZD) Firms amid High Inflation Expectations
The New Zealand Dollar (NZD) edged higher during last night’s session, with higher-than-expected business inflation expectations seemingly lending NZD support.