Pound (GBP) plummets as inflations falls short
The Pound (GBP) tumbled on Wednesday, following the publication of the UK’s consumer price index.
The CPI figures reported UK inflation cooled at a faster-than-expected pace in November. Sapping Sterling sentiment as it undermines the Bank of England’s (BoE) efforts to pushback on interest rate cut speculation.
The only notable UK data today is the Confederation of British Industry’s (CBI) latest distributive trades index. Could a decline in UK retail sector activity this month place additional pressure on the Pound?
Euro (EUR) pressured by slide in German PPI
The Euro (EUR) edged lower yesterday, following the publication of Germany’s latest producer price index (PPI).
EUR fell amid speculation the larger-than-expected decline in producer prices will feed through to consumers and the continued drop in inflation could weaken the European Central Bank’s (ECB) resolve to maintain interest rates at their current levels.
In the absence of any notable Eurozone data, the Euro may struggle to find direction in the second half of this week.
US Dollar (USD) fluctuates amid mixed sentiment
The US Dollar (USD) traded in a wide range on Wednesday. A risk-on mood initially saw the safe-haven currency fall out of favour. Before USD exchange rates began to find some support during the European session as market risk appetite waned.
Also infusing volatility into the ‘Greenback’ was ongoing speculation that the US central bank will begin cutting interest rates from March.
Coming up later tonight is the publication of the latest US GDP figures. Could another upwards revision to growth in the third quarter help to propel the US Dollar higher?
Canadian Dollar (CAD) strengthens as oil prices rise
The commodity-linked Canadian Dollar (CAD) rose in tandem with oil prices yesterday, as the latter struck its best levels since the end of November.
Later tonight Canada will publish its latest retail sales figures. Will an uptick in sales growth help to extend the ‘Loonie’s gains?
Australian Dollar (AUD) buoyed in risk-on trade
The Australian Dollar (AUD) ticked higher overnight on Wednesday as a broadly upbeat market mood reflected positively on the risk-sensitive currency.
New Zealand Dollar (NZD) slides despite positive data
The New Zealand Dollar (NZD) trended lower in overnight trade, with the fall in the ‘Kiwi’ coming despite a surprising rebound in domestic credit card spending.