Euro (EUR) Extends Downside following Cooler CPI
The Euro (EUR) ended a bruising week on the back foot as investors continued to price in a possible interest rate cut from the European Central Bank (ECB) in early 2024.
This came in the wake of the Eurozone’s consumer price index on Thursday, which showed that inflation cooled far more than forecast last month, dropping from 2.9% to 2.4% – close to the ECB’s 2% target.
Looking ahead, a speech from ECB President Christine Lagarde could dent the Euro, if she strikes a dovish tone.
Pound (GBP) Subdued following Manufacturing PMI
The Pound (GBP) traded without a clear direction on Friday, although it slipped against its stronger peers, following the UK’s final manufacturing PMI.
Although the PMI printed higher than preliminary estimates, it still showed a ninth consecutive month of contracting factory activity.
There is no UK data scheduled for release today. As a result, the Pound may struggle to find a clear direction.
US Dollar (USD) Wavers amid Uncertain Sentiment
The US Dollar (USD) failed to find a clear trajectory on Friday amid a shifting market mood.
A weaker-than-expected manufacturing PMI also seemed to trigger mixed USD movement. While the data was bad for the ‘Greenback’, it also soured the market mood, cushioning the safe-haven currency.
Turning to today, the latest US factory orders release is in focus. Could an expected contraction in orders see the US Dollar stumble?
Canadian Dollar (CAD) Climbs despite Rising Jobless Rate
The Canadian Dollar (CAD) climbed at the end of last week, despite mixed jobs data. An increase in full-time employment seemed to offset a rise in Canada’s jobless rate.
Oil prices could drive CAD exchange rates today. Could crude trend higher in the wake of last week’s OPEC+ production cut announcement, thereby boosting the oil-sensitive ‘Loonie’?
Australian Dollar (AUD) Briefly Spikes as Inflation Beats Forecasts
The Australian Dollar (AUD) spiked overnight after Australia’s latest monthly inflation gauge showed a larger-than-forecast rise in prices. However, the ‘Aussie’ was unable to sustain its upside.
New Zealand Dollar (NZD) See-Saws alongside AUD
The New Zealand Dollar (NZD) traded in tandem with AUD last night, rising and falling due to the close correlation between the two currencies.