Pound (GBP) firms following UK jobs data
The pound (GBP) strengthened yesterday as an unexpected drop in UK unemployment cheered GBP investors.
The latest labour market overview showed that the jobless rate fell from 4.1% to 4% in the three months to August, rather than holding steady. However, slowing wage growth capped the pound’s upside potential.
Turning to today, Sterling slumped this morning after the UK’s consumer price index for September showed that inflation cooled more than expected, dipping below the Bank of England’s (BoE) 2% target for the first time in over three years. Markets have ramped up bets on more BoE interest rate cuts.
Euro (EUR) wavers despite positive German data
The euro (EUR) fluctuated yesterday, as European Central Bank (ECB) rate cut bets offset some upbeat German data.
Germany’s latest ZEW economic sentiment index for October beat forecasts to show a better-than-expected recovery in morale. However, the likelihood of an ECB cut at tomorrow’s meeting saw EUR unable to hold its initial gains.
The common currency may see muted movement today amid a lack of data. However, a speech from ECB President Christine Lagarde this evening could affect EUR exchange rates, with any dovish hints potentially denting the euro.
US dollar (USD) uncertain amid lukewarm market mood
The safe-haven US dollar (USD) traded without a clear direction yesterday amid a mixed market mood.
In addition, a lack of market-moving American economic data also contributed to the currency’s uncertain movement.
Looking ahead, impactful US data remains in short supply. Therefore, the ‘greenback’ could once again trade in relation to market risk dynamics.
Canadian dollar (CAD) volatile as inflation misses forecasts
Weaker-than-forecast inflation data from Canada saw the Canadian dollar (CAD) stumble yesterday. However, CAD quickly bounced back, perhaps attracting some dip-buying.
Canadian economic data is thin on the ground today, potentially leaving CAD exposed to oil price dynamics and USD movement.
Australian dollar (AUD) stumbles as sentiment sours
The Australian dollar (AUD) fell last night as a risk-off mood weighed on the ‘Aussie’.
New Zealand dollar (NZD) slides amid cooling inflation
The New Zealand dollar (NZD) tumbled overnight after New Zealand inflation cooled rapidly in the third quarter, fuelling bets on more Reserve Bank of New Zealand (RBNZ) rate cuts.