Pound (GBP) lifted by stronger PPI data
The pound (GBP) gained ground against several peers on Wednesday, finding support from the latest UK producer price figures.
The Office for National Statistics (ONS) reported a notable uptick in PPI for the second quarter, highlighting persistent inflationary pressures. This bolstered expectations that the Bank of England (BoE) may be cautious of cutting interest rates again soon, keeping the pound underpinned.
With no major UK releases scheduled today, GBP could struggle to establish a clear trajectory.
Euro (EUR) pressured by weak German sentiment
The euro (EUR) slipped yesterday as Germany’s September consumer confidence index revealed a sharper-than-expected decline in household sentiment within the Eurozone’s largest economy.
EUR was also hampered by its strong inverse correlation with the strengthening US dollar (USD).
Attention today turns to the European Central Bank’s (ECB) meeting minutes. A broadly hawkish tone from policymakers could help the single currency recover.
US dollar (USD) fluctuates as market mood shifts
The safe-haven dollar initially climbed on Wednesday, buoyed by risk-off flows following the introduction of steep US tariffs on Indian exports.
However, sentiment later improved after tech giant Nvidia reported impressive earnings, sparking risk appetite and pulling USD lower.
Today’s second estimate for Q2 GDP, alongside the latest jobless claims data, could drive volatility in the ‘greenback’. A weaker reading may weigh on USD.
Canadian dollar (CAD) climbs with oil and USD
The oil-linked Canadian dollar (CAD) strengthened yesterday, with higher crude prices and a firmer US dollar providing tailwinds for the ‘loonie’.
Average earnings data is due today, which could further support CAD if wage growth continues to exceed inflation. Otherwise, oil movements and USD direction are likely to dictate the currency’s path.
Australian dollar (AUD) steady in quiet trade
The Australian dollar (AUD) largely traded sideways overnight, with a muted risk tone and absence of domestic data leaving the currency without clear impetus.
New Zealand dollar (NZD) rangebound despite upbeat survey
The New Zealand dollar (NZD) also held steady, unable to capitalise on a stronger-than-forecast improvement in August business confidence.
Never miss a movement. Create a free account with TorFX to get the latest currency news delivered straight to your inbox. You can also set up rate alerts and check live rates 24/7.