Pound (GBP) slips amid lack of data
The pound (GBP) drifted lower in yesterday’s session as a sparse UK data calendar left the currency vulnerable to mild selling pressure.
That said, losses in Sterling were fairly contained amid the subdued market conditions.
With no notable UK releases scheduled today, the pound may continue to struggle for a clear sense of direction.
Euro (EUR) trades unevenly after inflation data
The euro (EUR) lacked conviction on Tuesday as investors digested a mixed Eurozone consumer price index.
Although core inflation came in slightly below expectations, the figures failed to mirror the sharp slowdown recently seen in German inflation, muting the euro’s reaction.
Looking ahead, a surprise jump in German factory orders this morning could lend the single currency some support, while a robust Eurozone economic sentiment reading later in the day may offer additional impetus.
US dollar (USD) sees choppy trade on mixed signals
The US dollar (USD) experienced choppy trade yesterday as fluctuating risk appetite saw the safe-haven currency briefly lose ground before stabilising.
A patchwork of US data added to the uncertainty, with a stronger services PMI counterbalanced by softer labour market figures and a decline in factory orders.
The ‘greenback’ could come under renewed pressure today if US initial jobless claims rose as forecast last week, while the broader market mood is also likely to play a role.
Canadian dollar (CAD) recovers following oil-driven weakness
The commodity-linked Canadian dollar (CAD) briefly slipped to multi-week lows against some peers yesterday after oil prices fell. However, demand recovered following a stronger-than-expected Ivey PMI reading for December.
With little in the way of Canadian data due today, fluctuations in oil prices may remain the primary driver of CAD exchange rates.
Australian dollar (AUD) pressured by falling exports
The Australian dollar (AUD) weakened overnight after data revealed a 2.9% fall in Australian exports in November, undermining confidence in the currency.
New Zealand dollar (NZD) retreats amid risk-off mood
The New Zealand dollar (NZD) also moved lower during overnight trading, as a risk-averse mood swept through markets and weighed on demand for the risk-sensitive currency.
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