Pound (GBP) supported by risk-on mood
The pound (GBP) firmed yesterday as it was bolstered by a cautiously optimistic market mood.
However, the upside in Sterling remained modest in scope amid a lack of UK data to underpin GBP exchange rates.
UK data remains in short supply today, which may see the pound trade listlessly through to the end of the week.
Euro (EUR) firms on upbeat data
The euro (EUR) edged higher on Thursday, underpinned by some positive EUR data releases.
The uptick in the single currency was primarily driven by a surprise expansion in German factory orders in July, although it was also supported by a rebound in Eurozone retail sales over the same period.
Meanwhile, the euro faced resistance this morning as today’s session opened with the publication of weaker-than-expected industrial production figures from Germany.
US dollar (USD) dented by weak US jobs data
The US dollar (USD) stumbled yesterday, as a weaker-than-expected ADP employment report suggested the US private sector only added 99,000 jobs in August against the 145,000 expected.
Tempering these losses was the subsequent release of the ISM services PMI, which reported growth in the US services sector unexpectedly climbed to a three-month high in August.
Today’s US non-farm payroll report, which will be closely watched by investors as they seek to gauge how aggressively the Federal Reserve may cut interest rates this month. Will another lacklustre reading see the US dollar test new multi-month lows?
Canadian dollar (CAD) slips despite uptick in oil prices
The Canadian dollar (CAD) trended broadly lower on Thursday as the currency’s positive correlation with the US dollar offset any gains stemming from a modest uptick in oil prices.
Coming up, the ‘loonie’ may close this week on a sour note if Canada’s latest jobs figures report that domestic unemployment ticked higher last month.
Australian dollar (AUD) muted in dovish trade
The Australian dollar (AUD) traded in a narrow range overnight on Thursday as a cautious market mood limited the appeal of the risk-sensitive currency.
New Zealand dollar (NZD) trades sideways amid risk-off flows
The New Zealand dollar (NZD) also struggled to find momentum in overnight trade as investors erred on the side of caution ahead of the latest US payroll release.