Euro (EUR) Tumbles as Eurozone Inflation Cools
The Euro (EUR) plunged yesterday after the Eurozone’s latest consumer price index cooled more than forecast.
Headline inflation eased from 2.9% to 2.4%, rather than 2.7%, while core inflation also fell more than anticipated. This fuelled bets that the European Central Bank (ECB) may soon start thinking about rate cuts, which weighed on the Euro.
Today, three ECB officials – including the bank’s President, Christine Lagarde – are due to speak. Could dovish comments see the Euro slip lower?
Pound (GBP) Fluctuates amid Market Volatility
The Pound (GBP) faced turbulence yesterday as a lack of UK economic data left the currency vulnerable to end-of-month market volatility.
Overall, Sterling lost ground against many of its rivals, with investors seemingly having overpriced GBP in recent days.
The only data of note today is the UK’s final manufacturing PMI, which may only have an impact on the Pound if it differs significantly from the preliminary reading.
US Dollar (USD) Firms despite Slowing Inflation
The US Dollar (USD) trended higher yesterday, with the ‘Greenback’ managing to shrug off a cooldown in the US core PCE price index – the Federal Reserve’s preferred measure of inflation.
Instead of weakening, the safe-haven currency gained ground amid a souring market mood.
Looking ahead, the ISM manufacturing PMI is due out this afternoon. If US factory activity continued to contract in November then USD may stumble.
Canadian Dollar (CAD) Jumps as OPEC Cuts Oil Production
The crude-linked Canadian Dollar (CAD) surged higher yesterday after the OPEC+ group of oil-producing nations announced deepening production cuts. Mixed GDP data also seemed to lend CAD support, as the Canadian economy grew more than expected in September and October.
Turning to today, an expected uptick in the Canadian unemployment rate could send CAD exchange rates lower.
Australian Dollar (AUD) Choppy amid Uncertain Market Mood
The Australian Dollar (AUD) fluctuated overnight as a mixed market mood and lack of impactful Australian data left AUD without a clear direction.
New Zealand Dollar (NZD) Sheds Gains despite Strong Data
The New Zealand Dollar (NZD) spiked overnight following a stronger-than-forecast improvement in New Zealand consumer confidence last month. However, the ‘Kiwi’ struggled to hold on to its gains.