Pound (GBP) knocked by easing price pressures
The pound (GBP) stumbled yesterday after softer UK inflation figures fuelled speculation that the Bank of England (BoE) will cut interest rates next month.
Capping further losses was a simultaneous slide in UK gilt yields, which could ease some pressure on Chancellor Rachel Reeves ahead of next week’s budget.
Looking forward, with no major UK data due today, budget speculation may continue to inject volatility into GBP exchange rates.
Euro (EUR) supported by risk-off sentiment
The euro (EUR) edged higher on Wednesday, finding support as the global equity selloff triggered a fresh bout of risk aversion.
This helped lift the single currency, even as final Eurozone CPI confirmed inflation slowed to 2.1% in October.
Turning to today, with little in the way of Eurozone data until week’s end, broader market dynamics may steer EUR movement.
US dollar (USD) climbs amid nervous market mood
The US dollar (USD) strengthened throughout Wednesday’s session as jittery investors gravitated towards the safe-haven currency.
Providing additional upside were minutes from the Federal Reserve’s latest meeting, which revealed policymakers were reluctant to ease policy further, prompting a sharp fall in expectations for a December rate cut.
Following repeated postponements, today will finally see the release of September’s non-farm payrolls. Although outdated, the report will be scrutinised by USD traders, with any weak readings likely to quickly reignite Fed easing bets.
Canadian dollar (CAD) softens as crude oil tumbles
The Canadian dollar (CAD) edged lower on Wednesday, its performance undermined by a steep decline in oil prices.
If crude continues to retreat, the ‘loonie’ may encounter additional selling pressure today.
Australian dollar (AUD) supported by upbeat RBA commentary
The Australian dollar (AUD) firmed in overnight trade on Wednesday, after Reserve Bank of Australia (RBA) Assistant Governor Sarah Hunter highlighted ongoing inflation risks within the domestic economy.
New Zealand dollar (NZD) unsettled amid choppy sentiment
The New Zealand dollar (NZD) moved erratically overnight, with the ‘kiwi’ slipping initially in a cautious environment before recovering as market sentiment improved during Thursday’s Asian session.
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.