Euro (EUR) strengthens as German inflation jumps
The Euro (EUR) rallied on Thursday, in response to Germany’s latest consumer price index.
December’s preliminary CPI figures reported German inflation accelerated from 3.2% to 3.7%. This was the first rise in inflation in seven months and lifted the Euro as it dispelled European Central Bank (ECB) interest rate cut expectations.
If this spike in inflation is mirrored in the Eurozone CPI figures later today, it’s likely the Euro could extend its gains.
Pound (GBP) buoyed by better-than-expected services PMI
The Pound (GBP) firmed during yesterday’s session, after the UK’s latest services PMI beat expectations.
A larger-than-expected expansion in the vital services sector in December’s finalised PMI reading was welcomed by GBP investors as it bolsters hopes the UK could still avoid slipping into a recession.
Looking ahead, with UK data thin on the ground today, the Pound may trade without any strong directional bias.
US Dollar (USD) undermined by FOMC minutes
The US Dollar (USD) was subdued yesterday, as the minutes from the Federal Reserve’s latest policy meeting continued to weaken USD sentiment.
However, the ‘Greenback’ managed to claw back some of these losses later in the US trading session after the latest US jobs data beat expectations.
Centre stage today will be the latest US non farm payroll report. Will another lacklustre increase in employment growth sink the US Dollar? Or will December’s figures surprise to the upside and boost USD sentiment?
Canadian Dollar (CAD) steady amid modest uptick in oil prices
The Canadian Dollar (CAD) traded sideways on Thursday as a modest uptick in oil prices only offered limited support to the commodity-driven currency.
Coming up, Canada will publish its latest jobs report later this afternoon. Will a rise in unemployment last month pull the ‘Loonie’ lower?
Australian Dollar (AUD) slips in cautious trade
The Australian Dollar (AUD) trended lower overnight on Thursday, with the appeal of the risk-sensitive currency faltering amid bearish sentiment.
New Zealand Dollar (NZD) dented by risk-off trade
The New Zealand Dollar (NZD) also weakened overnight as much like the ‘Aussie’ the ‘Kiwi’ was undermined by a cautious market mood.