Pound (GBP) dented by public borrowing worries
The pound (GBP) slipped against its stronger rivals yesterday after British public borrowing came in higher than expected.
Government borrowing leapt to £17.4bn in October – the second-highest October borrowing on record and above forecasts for £12.3bn. This raised fears about the state of the UK public finances.
Sterling is facing selling pressure again today. UK retail sales contracted more than expected in October, while the UK’s PMIs are forecast to report muted growth.
Euro (EUR) pressured amid Russia-Ukraine fears
The euro (EUR) struggled yesterday as ongoing fears around the Russia-Ukraine war weighed on the common currency.
However, a pullback in the US dollar (USD) later in the afternoon helped cushion the euro, due to EUR’s strong negative correlation with USD.
Today, the Eurozone’s latest PMI results are the focus for EUR investors. Could sluggish growth in the bloc see EUR stumble?
US dollar (USD) mixed amid uncertain market mood
The US dollar wavered yesterday as a shifting market mood left the safe-haven currency without a clear trajectory.
A slight decline in US Treasury yields put pressure on the ‘greenback’, seeing it weaken against some of its counterparts.
This afternoon, the US PMIs are due to be published. Although not as impactful as the ISM releases, the S&P PMIs could boost USD if they reveal another expansion in American service sector activity.
Canadian dollar (CAD) rises on strong oil and hot PPI
The crude-linked Canadian dollar (CAD) climbed yesterday amid rising oil prices. An unexpectedly large acceleration in Canadian producer price growth also helped to boost CAD.
Later today, Canada’s September retail sales figures could impact the ‘loonie’. Will another 0.4% increase in sales growth lift the Canadian dollar?
Australian dollar (AUD) fluctuates amid mixed factors
The Australian dollar (AUD) was volatile overnight, dropping amid risk-off trade before rebounding on strong commodity prices.
New Zealand dollar (NZD) slips on dovish RBNZ bets
The New Zealand dollar (NZD) fared worse than the ‘Aussie’ overnight, as the dovish outlook for the Reserve Bank of New Zealand (RBNZ) pressured the ‘kiwi’.