Euro (EUR) falls amid Eurozone economy concerns
The Euro (EUR) stumbled yesterday after the European Central Bank’s (ECB) latest meeting minutes showed concern among policymakers about the Eurozone’s growth outlook.
An uptick in the US Dollar (USD) also weighed on the common currency, due to EUR’s strong negative correlation with USD.
Looking ahead, a speech from ECB President Christine Lagarde this morning might help the Euro gain some ground, if she continues to push back on rate cut bets.
Pound (GBP) uncertain amid lack of data
The Pound (GBP) failed to find a clear direction yesterday as a lack of UK data left the currency rudderless.
Wednesday’s strong inflation data may have continued to lend Sterling some support, cushioning its losses against stronger rivals.
This morning saw the Pound plunge after a staggering 3.2% slump in UK retail sales in December, versus expectations for a modest decline of 0.5%. This could pressure Sterling throughout today’s session.
US Dollar (USD) firms as jobless claims drop
The safe-haven US Dollar was initially muted yesterday as an improvement in market sentiment dampened USD’s appeal.
However, the ‘Greenback’ found support later in the session after a surprise drop in US jobless claims last week.
Turning to today, the latest US consumer sentiment index is due out this afternoon. Forecasters expect the measure to tick higher, which could boost USD.
Canadian Dollar (CAD) wavers higher alongside oil
The crude-linked Canadian Dollar (CAD) found limited success yesterday as oil prices fluctuated higher.
This afternoon, an expected halt in Canadian retail sales growth in November could put some pressure on CAD.
Australian Dollar (AUD) flat amid mixed market mood
Having edged higher through the evening amid a risk-on mood, a more neutral tone overnight saw the Australian Dollar (AUD) trade sideways.
New Zealand Dollar (NZD) slides after troubling PMI results
The New Zealand Dollar (NZD) fell to its lowest levels since late November against some peers last night. The downside came after New Zealand’s manufacturing PMI unexpectedly plunged from 46.7 to 43.1, rather than rising to 47.8.