Pound (GBP) underpinned by budget hopes
The pound (GBP) rose against its weaker rivals yesterday as GBP investors were cautiously optimistic ahead of the upcoming Autumn Budget.
The Labour government has been trying hard to present its forthcoming fiscal plans as a way to ‘rebuild Britain’ and boost growth, despite warning of ‘painful’ tax rises.
Sterling could once again trade with muted gains today if investors remain hopeful ahead of the budget. However, movement may be limited.
Euro (EUR) buoyed by USD weakness
The euro (EUR) enjoyed some support yesterday thanks to the single currency’s strong inverse correlation with a falling US dollar (USD).
However, an upbeat market mood and hesitancy ahead of some high-impact Eurozone data later in the week kept a lid on the safer euro.
This morning, Germany’s latest consumer confidence index rose to its highest level since April 2022, although it remains pessimistic. Could this boost EUR today?
US dollar (USD) softens amid improving mood
After a positive start to the week, the US dollar then began to fall in the European session as an improving mood sapped demand for the safe-haven ‘greenback’.
USD investors also seemed reluctant to bet heavily on the currency ahead of some very high-impact US releases later in the week.
Today the latest US Job Openings and Labor Turnover survey (JOLTs) is in focus for USD investors. Could another stronger-than-expected reading see the ‘greenback’ strengthen?
Canadian dollar (CAD) declines amid weaker oil prices
The Canadian dollar (CAD) trended lower yesterday as a slump in oil prices dented the crude-linked currency.
Looking ahead, Bank of Canada (BoC) Governor Tiff Macklem is due to deliver a speech this morning. Could downbeat comments about the Canadian economy drag on the ‘loonie’?
Australian dollar (AUD) slides in downbeat trade
The Australian dollar (AUD) continued to fall overnight as a gloomy mood in Chinese markets put heavy pressure on the ‘Aussie’.
New Zealand dollar (NZD) slips amid risk-off mood
The New Zealand dollar (NZD) also weakened during last night’s session as the sour sentiment weighed on the risk-sensitive ‘kiwi’.