US Dollar (USD) Pares Gains as Mood Improves
The US Dollar (USD) found early success yesterday as a risk-off mood provided the ‘Greenback’ with safe-haven flows.
Market sentiment then improved as the session went on, slashing USD’s gains. An uneventful speech from Federal Reserve Chair Jerome Powell also seemed to undermine the US Dollar.
Powell is due to speak again later this evening. If the Fed chief strikes a dovish tone tonight then USD will likely face losses.
Pound (GBP) Unpredictable amid Lack of Data
The Pound (GBP) continued its recent trend of trading in a wide range yesterday, as a lack of fresh impetus for GBP investors left the currency exposed to volatility.
Sterling softened against its stronger peers, while finding success against its weaker rivals.
British data is in short supply again today, while investors may exercise caution ahead of tomorrow’s GDP data.
Euro (EUR) Recovers as USD Retreats
The Euro (EUR) initially stumbled yesterday as confirmation of cooling German inflation and a larger-than-forecast contraction in Eurozone retail sales weighed on the common currency.
EUR then managed to regain ground later in the session, however, thanks to its strong negative correlation with a retreating US Dollar.
This morning, the European Central Bank (ECB) will publish its latest economic bulletin. Could a downbeat outlook see the Euro slip?
Canadian Dollar (CAD) Struggles as Oil Prices Continue to Fall
The Canadian Dollar (CAD) slipped against many of its peers yesterday as an ongoing decline in oil prices pressured the crude-linked ‘Loonie’.
Canadian economic data is lacking from today’s calendar. As a result, oil price dynamics may continue to drive CAD.
Australian Dollar (AUD) Ticks Higher amid Dip-Buying
The Australian Dollar (AUD) crawled higher last night, after losing ground yesterday, as investors appeared to buy the dip.
New Zealand Dollar (NZD) Tries to Regain Ground
The New Zealand Dollar (NZD) also edged higher during overnight trade, with the ‘Kiwi’ attempting to recoup some of yesterday’s losses.