US Dollar (USD) retreats following Fed minutes
The US Dollar (USD) slumped during yesterday’s trading session, following the publication of the minutes from the Federal Reserve’s latest policy meeting.
The minutes revealed that most Fed policymakers are confident that inflation is under control, with some also expressing concern that ‘overly restrictive’ monetary policy could stifle US economic growth.
The publication of the latest ADP employment figures may influenced USD exchange rates later today. Will another lacklustre expansion in US employment growth trigger a slump in the ‘Greenback’?
Pound (GBP) buoyed by consumer spending hopes
The Pound (GBP) ticked higher during yesterday’s session amid hopes that strong consumer spending over the holiday period may have helped the UK avoid a recession in 2023.
Data suggests that UK supermarkets enjoyed their busiest Christmas period since 2019, despite many consumers still being pressured by high interest rates and elevated inflation.
Coming up, Sterling sentiment may continue to improve today, if the UK’s latest services PMI confirms the private sector growth climbed to a six-month high in December.
Euro (EUR) Muted on mixed German jobs data
The Euro (EUR) struggled to find momentum on Wednesday, following the publication of Germany’s latest jobs report.
December’s figures reported unemployment in the Eurozone’s largest economy climbed to 5.9%, its highest level since May 2021. However, the rise in unemployed individuals was smaller-than-expected.
Germany will publish its latest consumer price index later this afternoon. December’s CPI figures are expected to report a sharp acceleration in inflation. Will this weaken European Central Bank (ECB) interest rate expectations and boost the Euro?
Canadian Dollar (CAD) dips despite uptick in oil prices
The Canadian Dollar (CAD) edged lower on Wednesday, with the oil sensitive struggling to attract support, despite a continued uptick in crude prices.
If oil prices remain on a positive trajectory will the ‘Loonie’ be able to mount a comeback today?
Australian Dollar (AUD) firms on upbeat China PMI
The Australian Dollar (AUD) ticked higher overnight on Wednesday, supported by a stronger-than-expected services PMI from China.
New Zealand Dollar (NZD) buoyed by risk-on mood
The New Zealand Dollar (NZD) also strengthened in overnight trade as a prevailing risk-on mood bolstered the appeal of the ‘Kiwi’.