Pound (GBP) subdued as consumer sentiment hits three-year low
The pound (GBP) struggled to find momentum yesterday after fresh data revealed that UK consumer confidence had deteriorated to its weakest level in three years this month.
The S&P Global consumer sentiment index dropped to 42.7 in September, with households increasingly concerned that higher interest rates and further tax increases could be on the horizon.
Sterling could face additional pressure today, as the latest UK government borrowing figures show that a wider-than-anticipated deficit has further reduced the fiscal room available ahead of the upcoming budget.
Euro (EUR) pressured as German election results spark concern
The euro (EUR) came under some pressure on Monday after regional election results in Germany were described as a ‘disaster’ for the governing CDU.
The outcome has intensified speculation over Chancellor Friedrich Merz’s political future, while also casting doubt on the government’s ability to secure sufficient support for its planned economic reforms.
The latest Eurozone consumer confidence figures are due later today, and another deterioration in household sentiment could leave the euro vulnerable to further losses.
US dollar (USD) downside limited by hawkish Fed expectations
The US dollar (USD) lacked direction at the beginning of this week as subdued trading conditions coincided with a broader improvement in market risk appetite.
However, losses in the ‘greenback’ remained relatively contained as investors continued to adjust their positions following last week’s Federal Reserve interest rate decision.
Later today, the latest ADP employment figures could provide fresh support for USD exchange rates if they indicate that US job creation remained resilient at the beginning of September.
Canadian dollar (CAD) pressured by falling crude prices
The Canadian dollar (CAD) slipped on Monday as the commodity-linked currency felt the impact of a renewed decline in oil prices.
Further weakness could be in store for the ‘loonie’ today if crude continues to lose ground and Brent falls beneath the $100-per-barrel mark once again.
Australian dollar (AUD) rebounds following RBA guidance
The Australian dollar (AUD) fluctuated through Tuesday’s Asian session, initially falling before recovering sharply after Reserve Bank of Australia (RBA) Governor Michelle Bullock struck a hawkish tone in her latest comments.
New Zealand dollar (NZD) rallies on hawkish RBNZ outlook
The New Zealand dollar (NZD) was similarly volatile overnight, with the ‘kiwi’ recovering from a multi-week low after Reserve Bank of New Zealand (RBNZ) Governor Anna Breman warned that surging oil prices could push inflation above the bank’s latest projections.
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.