Euro (EUR) buoyed by German trade data
The Euro (EUR) enjoyed support yesterday after an unexpectedly strong recovery in German exports, with growth recovering from -0.2% in October to 3.7% in November.
An uptick in Eurozone economic sentiment and consumer inflation expectations also boosted EUR, though contracting retail sales and weaker German factory orders limited the upside.
Earlier today, an unexpected contraction in German industrial production created headwinds for the Euro. The Eurozone unemployment rate is out later in the morning. If it remains near record lows, EUR could firm.
Pound (GBP) rises despite quiet session
The Pound (GBP) managed to edge higher yesterday, despite a lack of economic data and a gloomy market mood.
The upside seemed to come as investors rein in expectations for Bank of England (BoE) interest rate cuts after data last week indicated strong consumer spending and stubborn services inflation.
UK economic data is in short supply again today, which could leave Sterling to trade without a clear direction.
US Dollar (USD) subdued amid Fed rate cut bets
The US Dollar (USD) was muted yesterday, softening against its stronger peers and wobbling elsewhere, despite a risk-off market mood.
The downside came as markets continue to bet on a Federal Reserve interest rate cut in March. An increase in risk appetite later in the session also dented USD.
Looking ahead, Fed policymaker Michael Barr is due to speak this evening. Could dovish comments dent the ‘Greenback’?
Canadian Dollar (CAD) stumbles following Saudi oil price cuts
The crude-linked Canadian Dollar (CAD) faced selling pressure yesterday following news that Saudi Arabia is cutting oil prices.
Today, Canada’s latest trade figures could impact the ‘Loonie’, with an expected narrowing surplus potentially denting CAD. Otherwise, oil price movements may continue to drive the currency.
Australian Dollar (AUD) sheds gains despite strong retail sales
The Australian Dollar (AUD) initially rose last night following stronger-than-expected Australian retail sales. However, the ‘Aussie’ then stumbled amid declining commodity prices.
New Zealand Dollar (NZD) wobbles as commodity prices dip
Likewise, the New Zealand Dollar (NZD) drifted slightly lower overnight amid a weaker commodity market.