Pound (GBP) Nosedives following Cooler Inflation Figures
The Pound (GBP) plunged yesterday after the UK’s latest consumer price index missed forecasts.
Both headline and core inflation eased more than expected. This saw markets scale back bets on another Bank of England (BoE) interest rate hike, thereby sapping demand for Sterling.
UK economic data is thin on the ground today. As a result, the Pound may remain on the defensive as investors continue to reprice GBP following the UK inflation figures.
Euro (EUR) Dips as Industrial Production Shrinks
The Euro (EUR) slipped yesterday after the latest Eurozone industrial production figures showed a larger-than-forecast contraction in factory output in September.
The safer common currency also struggled against its risk-sensitive counterparts, as a cheery mood swept markets.
Turning to today, European Central Bank (ECB) President Christine Lagarde is due to speak this morning. If she strikes a dovish tone, we could see the Euro stumble.
US Dollar (USD) Struggles to Stage a Recovery
An uptick in US Treasury bond yields lent the US Dollar (USD) some support yesterday. However, other factors drove mixed movement.
New data showed a fall in US retail sales last month, although the decline was smaller than expected. Meanwhile, a drop in producer prices dampened Federal Reserve rate hike bets. Ultimately, USD languished near recent lows.
Looking ahead, the latest initial jobless claims from the US are out this afternoon. Could an uptick in claims dent the US Dollar?
Canadian Dollar (CAD) Steady despite Falling Oil Prices
The Canadian Dollar (CAD) climbed against its weaker rivals yesterday, with the crude-linked ‘Loonie’ shrugging off a decline in oil prices.
Oil is continuing to fall this morning. Could this drag CAD exchange rates lower as the session progresses?
Australian Dollar (AUD) Tumbles as Jobless Rate Rises
The Australian Dollar (AUD) fell sharply overnight after Australia’s unemployment rate ticked higher, thereby dampening Reserve Bank of Australia (RBA) rate hike bets.
New Zealand Dollar (NZD) Slides as Market Mood Sours
The New Zealand Dollar (NZD) also plunged last night, with the ‘Kiwi’ hurt by its positive correlation with AUD and a risk-off market mood.