Pound (GBP) mixed amid lack of data
The Pound (GBP) was mixed yesterday amid a lack of UK economic data.
These thin trading conditions saw Sterling fall against its safer peers and rise against its riskier rivals.
Turning to today, the Pound could face selling pressure after underwhelming average earnings data this morning. Cooling wage growth could prompt the Bank of England (BoE) to consider cutting interest rates sooner than anticipated.
Euro (EUR) capped by contracting German economy
The Euro (EUR) firmed against many of its peers yesterday as investors favoured the safer currency amid the downbeat market mood.
However, weak data limited EUR’s upside. German GDP was shown to have contracted in 2023, while Eurozone industrial production shrank in November.
This morning, an expected decline in German economic sentiment could dent EUR. However, if it beats forecasts, as it did the previous month, then the Euro could climb.
US Dollar (USD) rises amid risk aversion
The US Dollar (USD) gained ground yesterday as risk-averse trade boosted the safe-haven currency’s appeal.
A fresh escalation in the Middle East sparked anxiety among investors, after a missile fired from Yemen hit a US-owned container ship in the Gulf of Aden.
This afternoon, Federal Reserve policymaker Christopher Waller is due to speak. If he pushes back on rate cut speculation, USD could climb.
Canadian Dollar (CAD) slips as oil prices decline
The crude-linked Canadian Dollar (CAD) weakened yesterday as falling oil prices dragged the currency down.
Canada’s latest consumer price index could drive CAD movement this afternoon. Will an uptick in inflation see the ‘Loonie’ gain ground?
Australian Dollar (AUD) hits monthly lows following disappointing data
The Australian Dollar (AUD) fell overnight, striking a one-month low against some peers, amid an unexpected drop in consumer confidence and a risk-off market mood.
New Zealand Dollar (NZD) slides amid souring market mood
The New Zealand Dollar (NZD) also fell to monthly lows last night as the gloomy mood sapped demand for the risk-sensitive ‘Kiwi’.