US Dollar (USD) Muted following Weaker Jobs Data
The US Dollar (USD) traded broadly sideways yesterday amid some underwhelming US jobs data.
The ADP employment change figure for November missed forecasts, showing an unexpected slowdown in job creation. However, USD investors seemed to avoid making hasty bets ahead of tomorrow’s more impactful non-farm payrolls report.
Turning to the day ahead, the latest US initial jobless claims figure is expected to tick higher. Could further signs of a slowing labour market see the ‘Greenback’ stumble?
Pound (GBP) Softens following BoE Comments
Yesterday, the Pound (GBP) struggled in the wake of remarks from Bank of England (BoE) Governor Andrew Bailey.
Bailey struck a slightly more cautious tone than he has done in recent weeks, saying that interest rates would ‘likely’ remain at the current level for an extended period.
Looking at today’s session, a lack of British economic data could leave Sterling to trade without a clear direction.
Euro (EUR) Weakens on Poor German Data
The Euro (EUR) stumbled yesterday, dragged down by an unexpected slump in German factory orders.
Orders plunged 3.7% in October, rather than rising 0.2% as expected. This sparked fresh fears around the health of the manufacturing sector in the Eurozone’s largest economy.
Earlier today, German industrial production also fell short of expectations, putting pressure on EUR. The latest estimate for third-quarter Eurozone GDP growth is also out this morning, though it may only impact EUR if it differs from previous readings.
Canadian Dollar (CAD) Rises as PMI Beats Forecasts
The Canadian Dollar (CAD) edged higher yesterday, despite falling oil prices. A stronger-than-forecast Ivey PMI lifted CAD, although a rate hold from the Bank of Canada (BoC) seemed to cap the currency’s gains.
BoC Governor Tiff Macklem is due to speak this evening. Any policy hints could impact the Canadian Dollar.
Australian Dollar (AUD) Fluctuates amid Mixed Trade Data
The Australian Dollar (AUD) was volatile last night, slumping before bouncing back, amid mixed trade data from Australia and China.
New Zealand Dollar (NZD) Bounces alongside AUD
The New Zealand Dollar (NZD) also see-sawed overnight, with the ‘Kiwi’ trading true to its positive correlation with the ‘Aussie’.