Pound (GBP) Ticks Higher as Sentiment Improves
The Pound (GBP) found success against its safer rivals yesterday as a cautiously upbeat market mood lifted the increasingly risk-sensitive UK currency.
Sterling’s upside seemed limited, however, as GBP investors waited for today’s hotly anticipated UK labour market report.
This morning, the Pound is enjoying support following the report’s publication. The unemployment rate held steady, rather than rising as forecast, while wage growth remained resilient, thereby boosting GBP.
Euro (EUR) Subdued in Absence of Data
The Euro (EUR) was muted yesterday, slipping against its stronger peers, amid a lack of Eurozone economic data.
In the absence of any fundamental drivers of movement, the safer single currency traded on market risk dynamics, which saw EUR weaken against its riskier rivals.
Looking ahead, Germany’s economic sentiment index for November is forecast to have returned to positive territory for the first time since April. If the index prints as expected, EUR could climb.
US Dollar (USD) Stumbles amid Risk-Positive Trade
The US Dollar (USD) edged lower yesterday as a bullish market impulse undermined the safe-haven ‘Greenback’.
USD attempted a recovery at around midday amid an uptick in US Treasury yields. However, the American currency quickly ran out of steam and slipped lower.
The latest US consumer price index is in sharp focus today. Could a cooldown in inflation dent Federal Reserve rate hike bets, thereby prompting a USD selloff?
Canadian Dollar (CAD) Buoyed by Uptick in Oil
Rising oil prices underpinned the crude-linked Canadian Dollar (CAD) yesterday, keeping it afloat and helping it rise against weaker currencies.
Turning to today, an ongoing lack of market-moving Canadian data could leave CAD to trade on oil price dynamics.
Australian Dollar (AUD) Stumbles following Weak Data
The Australian Dollar (AUD) softened overnight after both the consumer and business confidence reports missed forecasts, showing deteriorations.
New Zealand Dollar (NZD) Slips on AUD Correlation
The New Zealand Dollar (NZD) also weakened during last night’s session, with NZD suffering from its positive correlation with AUD.