Pound (GBP) supported by BoE official’s inflation warning
The pound (GBP) gained ground on Wednesday, bolstered by comments from Bank of England (BoE) Deputy Governor Clare Lombardelli.
In an interview with the Financial Times, Lombardelli expressed concerns over persistent inflationary pressures in the service sector, dampening expectations for a December rate cut by the BoE.
Looking ahead, with no significant UK data releases today, the pound may struggle to maintain momentum.
Euro (EUR) gains on hawkish ECB commentary
The euro (EUR) ticked higher yesterday after European Central Bank (ECB) policymaker Isabel Schnabel remarked that there is only ‘limited room for further rate cuts’.
This sentiment, combined with the euro’s negative correlation with a weaker US dollar (USD), helped buoy the single currency.
Focus today will be on Germany’s preliminary CPI figures for November. An uptick in inflation could lend further support to the euro this afternoon.
US dollar (USD) weakens as risk appetite improves
The US dollar (USD) retreated on Wednesday as upbeat market sentiment diminished the appeal of the safe-haven currency.
However, the downside was limited by the release of October’s core PCE price index, with the Federal Reserve’s preferred indicator for inflation reporting its first increase in three months.
With US markets closed today for Thanksgiving, the dollar may see limited movement due to thin trading conditions.
Canadian dollar (CAD) dips as oil prices fall
The Canadian dollar (CAD) softened on Wednesday, pressured by a decline in oil prices as easing Middle East tensions reduced fears of disrupted crude production.
Oil price dynamics will remain key for the ‘loonie’ today, with further losses likely if crude prices continue to slide.
Australian dollar (AUD) slides amid cautious sentiment
The Australian dollar (AUD) edged lower overnight as a risk-averse market mood prompted investors to steer clear of the risk-sensitive ‘Aussie’.
New Zealand dollar (NZD) retreats on weak business confidence
The New Zealand dollar (NZD) slipped during overnight trade after a surprise drop in New Zealand’s business confidence index weighed on the ‘kiwi’.