Pound (GBP) stumbles amid fresh budget jitters
The pound (GBP) was unable to sustain its recovery yesterday as fresh fears over the UK’s looming Autumn Budget put GBP on the back foot.
Reports emerged suggesting that the government’s revenue-raising plans are in ‘complete disarray’, with less than three weeks until Chancellor Rachel Reeves unveils her budget. This rattled GBP investors, with the recent optimism quickly fading.
This morning, Sterling could enjoy support following the UK’s latest GDP figures. The British economy expanded 0.2% in August, rebounding after two consecutive months of zero growth.
Euro (EUR) subdued despite ECB meeting minutes
The euro (EUR) was mixed yesterday, despite the European Central Bank’s (ECB) September meeting minutes proving less dovish than expected.
The accounts showed that policymakers expect to lower interest rates gradually. However, the minutes failed to dampen bets on two more rate cuts this year, in light of more recent comments from ECB officials.
Today, EUR may remain muted amid a lack of market-moving Eurozone data.
US dollar (USD) firms despite cooling inflation
The US dollar (USD) wavered yesterday, though it managed to gain ground overall against many of its peers.
The movement came after US inflation cooled less than expected in September, with price pressures only easing modestly from 2.5% to 2.4%.
Turning to today, the US producer price index for September could influence USD. An expected slowdown in producer price growth may weigh on the ‘greenback’.
Canadian dollar (CAD) falls despite stronger oil prices
The Canadian dollar (CAD) weakened yesterday, with recovering oil prices failing to lift the crude-linked ‘loonie’, as ongoing fears over the Canadian economy kept CAD on the defensive.
Looking forward, Canada’s latest jobs report is the focus for CAD investors today. If the unemployment rate rose last month, as expected, the ‘loonie’ could face notable pressure.
Australian dollar (AUD) weakens in risk-off trade
The Australian dollar (AUD) stumbled during the overnight session as a downbeat market mood put pressure on the risk-sensitive ‘Aussie’.
New Zealand dollar (NZD) undermined by gloomy mood
A slight improvement in New Zealand’s latest manufacturing PMI lent the New Zealand dollar (NZD) modest support overnight, but the shift to risk-off trade saw NZD surrender its gains.