US Dollar (USD) Rebounds following Inflation Data
The safe-haven US Dollar (USD) initially weakened yesterday amid a risk-on market mood.
However, the ‘Greenback’ recovered during the American trading hours after signs of sticky US inflation boosted USD in the run-up to the Federal Reserve’s interest rate decision.
With the Fed set to leave policy untouched this evening, the focus will be on the bank’s forward guidance. Could a hawkish tone lift the US Dollar?
Pound (GBP) Wavers amid Mixed Jobs Data
The Pound (GBP) faced volatility yesterday after a larger-than-forecast cooldown in UK wage growth impacted Bank of England (BoE) interest rate cut expectations.
However, the British unemployment rate surprised to the upside, holding steady at 4.2%. This cushioned the Pound’s downside.
This morning, Sterling is facing selling pressure after the UK’s latest GDP figures reported an unexpected contraction in the UK economy in October.
Euro (EUR) Climbs as German Data Beats Forecasts
The Euro (EUR) rallied during yesterday’s session after Germany’s latest economic sentiment index beat forecasts.
December’s index unexpectedly rose to 12.8 – its highest reading since March – boosting optimism around the health of the Eurozone’s largest economy.
The bloc’s latest industrial production figure is the only data release for the Eurozone due out today. Could a decline in production see EUR stumble?
Canadian Dollar (CAD) Falls as Oil Prices Slide
The crude-linked Canadian Dollar (CAD) fell yesterday as oil prices slumped as much as 3% over the course of the day’s trade.
Looking forward, oil price dynamics may continue to be the main factor influencing CAD exchange rates today. Could a continued pullback in prices see the ‘Loonie’ fall further?
Australian Dollar (AUD) Flat amid Thin Trading Conditions
The Australian Dollar (AUD) traded mostly sideways last night amid a lack of data and a cautious mood ahead of the Fed rate decision.
New Zealand Dollar (NZD) Slips on RBNZ Rate Hike Doubts
The New Zealand Dollar (NZD) weakened overnight as a pullback in Reserve Bank of New Zealand (RBNZ) rate hike bets dented NZD.