Pound (GBP) pressured by fiscal concerns
The pound (GBP) was left subdued on Thursday as investors priced in a greater risk premium ahead of Chancellor Rachel Reeves’s upcoming autumn budget.
Reports suggesting the government could remove the two-child limit on child benefits reignited concerns over how such policies would be financed.
Looking ahead, remarks from Bank of England (BoE) Governor Andrew Bailey will be closely watched today. Any hawkish signals could provide Sterling with some positive momentum into the weekend.
Euro (EUR) stumbles as unemployment rises
The euro (EUR) lost traction on Thursday following the release of the Eurozone’s latest employment data.
Figures for August revealed joblessness across the bloc edged up to 6.3%, missing forecasts of a steady 6.2% at record lows.
Attention will now shift to a speech from European Central Bank (ECB) President Christine Lagarde. If she hints the bank’s rate cutting cycle is at an end, the euro may recover.
US dollar (USD) dragged by jobs uncertainty
The US dollar (USD) remained on the back foot on Thursday, as concerns over both the US government shutdown and weakening labour market trends weighed on sentiment.
With the shutdown delaying the publication of jobless claims and payrolls, focus lingered on Wednesday’s ADP report, which showed an unexpected plunge in private sector hiring.
In the absence of NFP figures, today’s ISM services PMI will take centre stage. A solid reading could allow the US dollar to regain some lost ground.
Canadian dollar (CAD) softens as crude weakens
The Canadian dollar (CAD) slipped lower on Thursday as falling oil prices undermined demand for the resource-linked currency.
With crude sliding to a four-month trough, the ‘loonie’ looks likely to remain under pressure ahead of this weekend’s OPEC gathering.
Australian dollar (AUD) steady after PMI revision
The Australian dollar (AUD) traded without clear direction overnight after PMI revisions pointed to a slightly smaller downturn in services activity, though still signalling growth at a three-month low in September.
New Zealand dollar (NZD) lifted by upbeat mood
The New Zealand dollar (NZD) ticked higher in overnight trade, supported by a mildly risk-positive market environment.
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.