Pound (GBP) Volatile as High-Impact Data Looms
The Pound (GBP) moved higher during yesterday’s European session before trimming its gains against some of its peers during the US trading hours.
The volatility in Sterling came amid a lack of UK economic data and ahead of a busy week, which kicked off with this morning’s labour market report.
The report showed that wage growth cooled more than forecast in October, thereby putting pressure on Sterling. However, the UK unemployment rate held steady, which may cushion GBP’s losses.
Euro (EUR) Slips Ahead of ECB Meeting
The Euro (EUR) weakened against many of its peers yesterday, hitting a fresh three-month low against the Pound, as investors repositioned ahead of the European Central Bank (ECB) meeting later in the week.
With signs of a struggling Eurozone economy and inflation nearing the ECB’s target, markets are speculating that the bank may strike a dovish tone when it announces its policy decision on Thursday.
The focus today shifts to Germany’s latest ZEW economic sentiment index, due out later this morning. Could a decline in morale in the Eurozone’s largest economy dent EUR?
US Dollar (USD) Mixed as Markets Await Fed
The US Dollar (USD) traded without a clear direction yesterday, with USD investors waiting on the sidelines ahead of an eventful week.
In addition, an uncertain market mood added to the safe-haven currency’s mixed movement.
Looking ahead, the US consumer price index for November is in the spotlight today. If the CPI suggests that inflation is levelling out above the Federal Reserve’s 2% target, the ‘Greenback’ could climb.
Canadian Dollar (CAD) Firms despite Dip in Oil
The Canadian Dollar (CAD) climbed higher yesterday, although a dip in oil prices saw the crude-linked ‘Loonie’ waver.
Oil prices may impact CAD exchange rates today amid a lack of Canadian economic data. Volatility in the markets could see the ‘Loonie’ slip lower.
Australian Dollar (AUD) Rises despite Mixed Data
The Australian Dollar (AUD) firmed overnight, despite mixed results from the latest consumer and business confidence reports, as a risk-on mood boosted the currency.
New Zealand Dollar (NZD) Climbs as Mood Improves
The New Zealand Dollar (NZD) also strengthened last night, as the risk-sensitive ‘Kiwi’ attracted support amid the bullish market impulse.