Pound (GBP) uncertain amid market volatility
The pound (GBP) traded without a clear direction yesterday, with general market volatility causing GBP to waver.
Meanwhile, investors largely brushed off a larger-than-expected drop in retail sales volumes revealed in the Confederation of British Industry’s (CBI) latest distributive trades survey.
Today, Sterling could once again trade without a clear trajectory amid a lack of UK economic data.
Euro (EUR) mixed amid USD volatility
The euro (EUR) was also uncertain yesterday, with EUR wobbling due to its negative correlation with a volatile US dollar (USD).
The common currency was able to shrug off concerns about the Russia-Ukraine war, however, despite the Kremlin warning that it would retaliate for Ukrainian strikes on Russian territory using US-made missiles.
Germany’s latest consumer confidence report could influence EUR this morning. If consumer morale in the Eurozone’s largest economy declined heading into December, the euro could stumble.
US dollar (USD) fluctuates amid Trump tariff warnings
The US dollar saw choppy trade yesterday after Donald Trump’s tariff announcement on social media rocked markets.
USD wavered as investors reacted to and digested the unexpected announcement, although markets eventually stabilised.
Following the Federal Reserve’s meeting minutes last night, which showed broad support for ‘gradually’ lowering interest rates, USD investors will be awaiting the October core PCE price index due out this afternoon. An uptick in the Fed’s preferred measure of inflation could boost USD.
Canadian dollar (CAD) hit by 25% tariff on Canadian products
The Canadian dollar (CAD) slumped yesterday, as Trump’s announcement of a 25% tariff on all Canadian products entering the US spooked CAD investors.
With economic data from Canada thin on the ground today, US tariff fears could continue impacting the ‘loonie’. In addition, oil prices may affect the crude-linked currency.
Australian dollar (AUD) steady despite weaker inflation
The Australian dollar (AUD) avoided notable losses overnight, despite Australia’s latest inflation reading printing lower than expected, as a cheery mood and rising commodity prices bolstered the ‘Aussie’.
New Zealand dollar (NZD) soars despite RBNZ rate cut
The New Zealand dollar (NZD) rallied last night in the wake of the Reserve Bank of New Zealand’s (RBNZ) interest rate decision. While the bank cut rates by 50bps, as expected, markets now see a reduced likelihood of further aggressive cuts in the future.