Pound (GBP) holds firm despite lack of data
The pound (GBP) rose against its weaker rivals yesterday and suffered only limited losses elsewhere, despite a lack of UK data.
Investors seemed to react positively to the start of the spending review from UK Chancellor Rachel Reeves, who pledged to cut waste and increase collaboration with the private sector.
Turning to today, UK economic data remains thin on the ground. Sterling could see mixed movement as a result.
Euro (EUR) falls ahead of ECB decision
The euro (EUR) fell yesterday as pressure built ahead of tomorrow’s interest rate decision from the European Central Bank (ECB).
Additionally, the common currency’s strong negative correlation with the US dollar (USD) sapped EUR demand, as the ‘greenback’ rose.
Eurozone data is also lacking today, potentially keeping EUR muted ahead of the ECB policy announcement tomorrow.
US dollar (USD) rises alongside Treasury yields
The US dollar climbed yesterday, with an uptick in US Treasury bond yields boosting USD.
A fading appetite for risk also spurred demand for the safe-haven currency.
Looking ahead, the spotlight falls on the latest US inflation figures, due out this afternoon. If American inflation ticked higher in November, as expected, USD could strengthen.
Canadian dollar (CAD) buoyed by rising oil and USD
The crude-linked Canadian dollar (CAD) was bolstered by a rise in oil prices yesterday, while CAD’s positive correlation with USD also supported the ‘loonie’.
Today, CAD investors will be focused on the Bank of Canada’s (BoC) latest interest rate decision. Could a 50bps rate cut see the ‘loonie’ slump?
Australian dollar (AUD) slips as RBA headwinds persist
The Australian dollar (AUD) weakened overnight as yesterday’s dovish interest rate decision from the Reserve Bank of Australia (RBA) continued to pressure the ‘Aussie’.
New Zealand dollar (NZD) falls amid risk-off mood
The New Zealand dollar (NZD) also fell last night, with a risk-off mood and AUD weakness weighing on NZD.
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