Pound (GBP) slips in gloomy trade
The pound (GBP) trended broadly lower on Wednesday as a downbeat market mood sapped Sterling sentiment.
GBP also appeared to run afoul of some profit-taking after appreciating sharply over the past couple of weeks.
UK economic data remains thin on the ground today, potentially leaving the pound without a strong directional bias.
Euro (EUR) undermined by USD strength
The euro (EUR) stumbled yesterday as it was undermined by its negative correlation with the US dollar (USD)
Speculation the European Central Bank (ECB) will cut interest rates at least a couple more times before the end of the year also added to the pressure on EUR.
Centre stage today is the publication of Germany’s consumer price index. This could see the euro weaken this afternoon as an expected cooling of inflation may stoke ECB rate cut bets.
US dollar (USD) bolstered by risk-averse mood
The US dollar rallied on Wednesday as a cautious market mood saw investors favour the safe-haven currency.
The rebound in the ‘greenback’ was also supported by investors seeking to ‘buy the dip’, after USD exchange rates plummeted to multi-month lows last week.
Today’s data calendar sees the release of the latest US GDP estimate and US initial jobless claims. Barring a revision to second quarter growth, movement in the US dollar may be driven by jobless figures, with a rise in new unemployment claims potentially dragging on USD exchange rates.
Canadian dollar (CAD) muted as oil prices sink
The Canadian dollar (CAD) struggled to attract support yesterday as a continued slump in oil prices weighed on the commodity-linked currency.
If crude prices remain in retreat, the ‘loonie’ may face similar resistance through today’s session.
Australian dollar (AUD) strengthens as risk appetite recovers
The Australian dollar (AUD) rebounded overnight on Wednesday, with the currency drawing support from a rebound in market risk appetite through the Asian trading session.
New Zealand dollar (NZD) jumps as business confidence surges
The New Zealand dollar (NZD) rallied in overnight trade as data showed that domestic business confidence rocketed to a decade high this month.