Pound (GBP) muted amid lack of UK data
The Pound (GBP) moved without a clear direction yesterday, softening against its stronger peers and holding steady elsewhere, amid a lack of notable UK data.
The absence of market-moving economic releases left the increasingly risk-sensitive currency exposed to a cautious mood, which pressured GBP.
Turning to today’s session, Bank of England (BoE) Governor Andrew Bailey is due to speak this afternoon. If the BoE chief once again argues that rate cuts are far from policymakers’ minds then Sterling could strengthen.
Euro (EUR) rebounds on record-low unemployment
The Euro’s (EUR) movement was also unclear yesterday, although the currency fared better than the Pound, as investors responded to mixed data.
German industrial production unexpectedly contracted, denting EUR, while a surprise drop in Eurozone unemployment helped the common currency recover. The bloc’s jobless rate hit a joint record low in November.
EUR may see movement this morning as investors respond to a recent speech by European Central Bank (ECB) Vice-President Luis de Guindos. His comments could support the Euro, after he said the pace of disinflation may slow this year.
US Dollar (USD) rises amid risk-off mood
The US Dollar (USD) moved higher during yesterday’s session as a gloomy mood among investors lifted the safe-haven currency.
Markets seemed concerned about the darkening global geopolitical outlook amid escalating tensions in the Middle East.
Tonight, comments from Federal Reserve policymaker John Williams could impact USD. A dovish stance from the rate-setter could dent the ‘Greenback’. Until then, risk appetite may drive the currency’s movement.
Canadian Dollar (CAD) undermined by downbeat trade data
The oil-sensitive Canadian Dollar (CAD) initially benefitted from an uptick in crude prices on Tuesday. However, weak Canadian trade data then dragged the ‘Loonie’ lower.
Looking ahead, oil price dynamics could drive CAD exchange rates today. Will crude volatility reflect negatively on the Canadian Dollar?
Australian Dollar (AUD) firms despite softer inflation
The Australian Dollar (AUD) managed to edge higher last night, despite a larger-than-forecast decline in Australia’s monthly inflation reading for November. Stronger commodities prices seemed to lift the resource-linked currency.
New Zealand Dollar (NZD) wobbles amid mixed trade
The New Zealand Dollar (NZD) wavered overnight amid a mixed market mood and lack of economic data.