Pound (GBP) falters amid domestic economic challenges
The pound (GBP) slipped on Thursday as the UK continued to face a scarcity of market-moving economic data.
Sterling sentiment was further dampened by mixed signals from the retail sector over the festive period, with many businesses noting that fragile consumer confidence left households reluctant to spend on non-essential items.
With little UK data on the calendar again today, the pound may continue to drift without a clear directional driver.
Euro (EUR) lifted by upbeat German orders data
The euro (EUR) advanced yesterday after EUR investors reacted positively to unexpectedly robust factory orders figures from Germany.
Orders surged by 5.6% in November, fuelling optimism that the Eurozone’s largest economy may be turning a corner after a lengthy industrial downturn.
However, the single currency could face headwinds today after Germany’s latest trade data revealed a surprise fall in exports during November.
US dollar (USD) firms amid cautious market mood
The US dollar (USD) strengthened on Thursday as geopolitical tensions encouraged investors to seek out safe-haven currencies.
Capping further gains in the greenback were last week’s initial jobless claims, which pointed to an increase in new unemployment filings.
Attention now turns to the latest US payrolls report. If December’s figures suggest the labour market continues to cool, dovish Federal Reserve rate expectations may intensify and drag the US dollar lower.
Canadian dollar (CAD) supported by higher oil prices
The Canadian dollar (CAD) moved broadly higher yesterday, with the oil-linked currency benefiting from a solid rise in crude prices.
That support could be tested later today, however, as domestic data is expected to show Canada’s unemployment rate climbed again in December.
Australian dollar (AUD) slips as Chinese inflation disappoints
The Australian dollar (AUD) edged lower in overnight trade after weaker-than-expected Chinese inflation data weighed on sentiment toward the ‘Aussie’.
New Zealand dollar (NZD) pressured by risk-off sentiment
The New Zealand dollar (NZD) also retreated overnight on Thursday, undermined by a cautious, risk-averse trading 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.