Pound (GBP) Mixed amid Lack of Data
The Pound (GBP) fluctuated without a clear direction yesterday as a lack of UK economic data left the currency exposed to volatility.
GBP traded in a wide range throughout the day, though it did manage to edge higher overall against some of its weaker rivals.
With British economic data still in short supply today, Sterling could end the week trading in a mixed capacity once again.
Euro (EUR) Stifled by Gloomy German Data
The Euro (EUR) was also mixed yesterday, although it fared slightly better than the Pound, despite an unexpected contraction in German industrial production.
EUR may have been supported by its negative trading relationship with the US Dollar (USD), as the American currency retreated through the session.
EUR’s correlation with USD could prompt volatility later today, amid some high-impact American data.
US Dollar (USD) Retreats as Jobless Claims Climb
After striking multi-week highs overnight, the US Dollar then marched steadily lower through yesterday’s European session. USD seemed to initially suffer some profit-taking.
An uptick in US jobless claims added to the currency’s woes in the afternoon. Further signs that the US labour market is slowing pressured USD.
Turning to today, November’s non-farm payrolls report is in the spotlight. An expected acceleration in job creation could boost USD. However, if the report follows the recent trend and falls short of forecasts then we could see the US Dollar nosedive.
Canadian Dollar (CAD) Slips despite Stronger Oil Prices
The Canadian Dollar (CAD) softened yesterday due to CAD’s positive corelation with USD. Rising oil prices failed to lift the crude-linked ‘Loonie’.
Looking ahead, a lack of Canadian economic data today could see oil prices and USD movement continue to impact CAD.
Australian Dollar (AUD) Muted in Uncertain Trade
The Australian Dollar (AUD) wavered overnight on Thursday as a sense of cautioun ahead of today’s US payroll figures led to subdued market movement.
New Zealand Dollar (NZD) Subdued amid Mixed Mood
Movement in the New Zealand Dollar (NZD) echoed that of the ‘Aussie’ overnight, with the ‘Kiwi’ trading without direction ahead of some key US data.