Pound (GBP) muted as UK business confidence declines
The pound (GBP) was mixed yesterday, with Sterling struggling against its stronger peers, following the UK’s final manufacturing PMI.
As the results matched the preliminary estimate, movement was limited. However, a slowdown in factory activity and a slump in business confidence put some pressure on GBP.
Sterling could trade without a clear direction once again today amid a lack of UK economic data.
Euro (EUR) slips as Eurozone inflation cools
The euro (EUR) fell yesterday, striking new multi-month lows against some peers, following the Eurozone’s September consumer price index.
The latest CPI figures showed that inflation cooled from 2.2% to 1.8% last month, missing forecasts and dipping below the European Central Bank’s (ECB) 2% target. Bets on a coming interest rate cut saw the single currency weaken.
Later this morning, the Eurozone’s unemployment rate for August is set to hold at a record low of 6.4%. This may lend EUR some support during today’s session.
US dollar (USD) rises as risk aversion sweeps markets
The US dollar (USD) climbed yesterday as a risk-off market mood boosted demand for the safe-haven currency following reports that Iran was planning an attack on Israel.
The latest US Job Openings and Labor Turnover survey (JOLTs) also lent USD support, as it revealed an unexpected rise in new vacancies.
This afternoon, the latest ADP employment change figure is due out. Could another weak reading ahead of Friday’s more influential payrolls print put USD on the defensive?
Canadian dollar (CAD) leaps alongside oil prices
The crude-linked Canadian dollar (CAD) strengthened yesterday following a spike in oil prices. Crude prices surged amid fears of an Iranian missile strike on Israel.
Movements in the oil market may continue driving CAD today amid an absence of Canadian data. If oil prices continue to rise, so could the Canadian dollar.
Australian dollar (AUD) underpinned by stronger commodities
The Australian dollar (AUD) wavered overnight. While worries about Iran’s airstrike on Israel dampened risk appetite, rising commodities prices lent the resource-linked ‘Aussie’ some support.
New Zealand dollar (NZD) wavers amid mixed factors
Likewise, the New Zealand dollar (NZD) faced choppy movement last night as market anxiety and stronger commodities prices pulled the currency in different directions.