Pound (GBP) nudges higher amid brighter risk appetite
The pound (GBP) drifted upward against a broad basket of peers yesterday, with movement largely shaped by global sentiment rather than domestic catalysts.
A buoyant risk backdrop supported the increasingly risk-sensitive currency, while softness in other majors added to GBP’s modest momentum.
With the UK calendar virtually empty as the week concludes, Sterling may struggle to find a definitive direction today.
Euro (EUR) lifted by softer USD before retreating
The euro (EUR) gained ground early during yesterday’s session, capitalising on its strong inverse relationship with a weakening US dollar (USD).
Later in the session, however, lingering unease over Europe’s strained relations with Russia and diminishing confidence in Ukraine peace efforts saw EUR relinquish some of its gains.
Stronger-than-forecast German factory orders may provide fresh backing for the single currency this morning. The Eurozone’s updated reading for third-quarter GDP could also spark movement, particularly if it diverges from earlier estimates.
US dollar (USD) stays subdued as rate cut bets dominate
The US dollar remained under pressure on Thursday as investors continued to anticipate an imminent interest rate cut from the Federal Reserve.
An unexpected dip in weekly jobless claims offered the ‘greenback’ little meaningful support, although it may have helped to stem a deeper selloff.
This afternoon brings the University of Michigan’s consumer sentiment survey. Any improvement could offer USD a tentative foothold.
Canadian dollar (CAD) recovers alongside climbing oil prices
The Canadian dollar (CAD) initially faltered yesterday, pulled lower by its positive correlation with the softening US dollar. As crude prices strengthened, however, the commodity-linked currency was able to regain lost ground.
Attention now turns to Canada’s unemployment figures. A rise from 6.9% to 7% in November, if confirmed, may weigh on CAD.
Australian dollar (AUD) benefits from upbeat risk tone
The Australian dollar (AUD) extended its ascent overnight, with the broadly positive market mood continuing to buoy the risk-sensitive currency.
New Zealand dollar (NZD) supported by positive sentiment
The New Zealand dollar (NZD) also pushed higher, underpinned by the prevailing risk-on environment.
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