Pound (GBP) pressured by Labour leadership rumours
The pound (GBP) stumbled again yesterday as speculation swirled that Prime Minister Keir Starmer could face a leadership challenge in the wake of the autumn budget.
The talk revived memories of the political turbulence that rattled Sterling at the end of the previous government, unsettling GBP traders once more.
As for today, the UK’s preliminary GDP reading showed growth slowed more sharply than forecast in the third quarter, slipping from 0.3% to 0.1%. This is dragging on the pound, as it strengthens expectations for another Bank of England (BoE) rate cut in December.
Euro (EUR) muted amid upbeat market mood
The euro (EUR) trod water yesterday as a modest rebound in the US dollar (USD) and a risk-on mood in global markets limited demand for the single currency.
With no significant Eurozone data on the docket, EUR was largely driven by these broader, external forces.
The European Central Bank’s (ECB) latest economic bulletin may offer some support today if it signals steady economic conditions and continuing progress in bringing inflation under control.
US dollar (USD) nudges higher as House votes on shutdown
The US dollar recovered slightly yesterday following Tuesday’s losses, as markets positioned for a resolution to the longest US government shutdown on record.
After clearing the Senate, the funding bill headed to the Republican-controlled House of Representatives, where approval was widely expected.
USD could see volatility today after the House did vote to end the shutdown. The development may lend some support to the dollar, although a prevailing risk-on atmosphere is currently curbing appetite for safe-haven assets.
Canadian dollar (CAD) mixed as oil and USD pull in opposite directions
The Canadian dollar (CAD) endured another uneven session yesterday, with its close links with both the firmer US dollar and softening oil prices pushing it in competing directions.
With domestic economic releases still lacking, the ‘loonie’ is likely to remain at the mercy of oil market shifts and USD movement again today.
Australian dollar (AUD) surges as unemployment dips
The Australian dollar (AUD) jumped overnight after Australia’s unemployment rate fell more than anticipated in October, easing from 4.5% to 4.3%.
New Zealand dollar (NZD) falters after underwhelming spending data
The New Zealand dollar (NZD) drifted lower overnight as a weaker-than-expected rebound in domestic card spending left NZD investors underwhelmed.
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