US Dollar (USD) Slides amid Cheery Trade
The US Dollar (USD) fell yesterday as a risk-on sentiment sapped the safe-haven currency’s appeal.
In addition, speculation that the Federal Reserve will cut interest rates early next year added to the pressure on the ‘Greenback’.
Turning to today, the latest US initial jobless claims figure is due out. If benefits claims edged higher last week, USD could soften.
Pound (GBP) Mixed amid Thin Trading Conditions
The Pound (GBP) was mixed yesterday amid a lack of UK economic data.
While a cheery mood lent the increasingly risk-sensitive currency some support, the recent rise in Bank of England (BoE) interest rate cut bets weighed on GBP.
Looking ahead, UK data remains thin on the ground today. As a result, Sterling could trade without a clear direction.
Euro (EUR) Enjoys USD Correlation
The Euro (EUR) rose during yesterday’s trade, thanks to its strong negative correlation with a weakening US Dollar.
However, a lack of Eurozone data and an upbeat market mood capped the common currency’s upside.
Eurozone data is also absent from the calendar during today’s session. EUR exchange rates may therefore be muted.
Canadian Dollar (CAD) Slips as Oil Prices Decline
The crude-linked Canadian Dollar (CAD) traded in tandem with oil prices yesterday, dropping during European trade as prices declined.
Today is likely to see CAD continue to be driven by oil price dynamics amid a lack of Canadian economic data.
Australian Dollar (AUD) Choppy amid Lack of Data
The Australian Dollar (AUD) fluctuated overnight, softening against its stronger peers, amid thin trading conditions.
New Zealand Dollar (NZD) Wobbles in Uncertain Trade
The New Zealand Dollar (NZD) was also exposed to volatility last night, causing the ‘Kiwi’ to waver lower.