US Dollar (USD) Crumbles as CPI Misses Forecasts
The US Dollar (USD) fell off a cliff yesterday after the latest American consumer price index printed below expectations.
With both headline and core inflation cooling more than forecast, markets became increasingly convinced that the Federal Reserve is done with its rate hiking cycle. This sparked a selloff in USD.
This afternoon, US retail sales are the focus for USD investors. Will an expected 0.3% decline dent the ‘Greenback’?
Pound (GBP) Firms following Positive Jobs Data
The Pound (GBP) gained ground yesterday following a stronger-than-expected labour market report.
The UK unemployment rate held at 4.2%, rather than rising to 4.3% as expected, while wage growth remained historically high.
Turning to today, Sterling is relinquishing its gains after UK inflation cooled more than forecast. This has led to a sharp pullback in Bank of England (BoE) interest rate hike bets.
Euro (EUR) Trims Gains despite Strong German Data
The Euro (EUR) initially strengthened yesterday after a larger-than-expected recovery in German economic sentiment boosted the single currency.
However, the safer Euro stumbled against its riskier peers in the afternoon due to a sudden improvement in the market mood.
Looking ahead, EUR exchange rates could face selling pressure later this morning as Eurozone industrial production is forecast to have contracted by 1% in September.
Canadian Dollar (CAD) Falls in Tandem with USD
The Canadian Dollar (CAD) tumbled yesterday as the ‘Loonie’ traded true to its positive correlation with the US Dollar.
Today, oil price dynamics could impact the crude-linked currency. Could weaker oil prices keep CAD subdued?
Australian Dollar (AUD) Stabilises after Leaping Higher
The Australian Dollar (AUD) traded in a narrow range last night, holding on to the impressive gains it made during yesterday afternoon’s risk-on rally. A lack of market-moving data limited further movement.
New Zealand Dollar (NZD) Climbs amid Cheery Trade
The New Zealand Dollar (NZD) was able to extend yesterday’s gains during overnight trade, with the risk-sensitive currency attracting support amid the upbeat market mood.