Pound (GBP) subdued as data remains scarce
The pound (GBP) edged lower against its stronger counterparts yesterday, with a lack of UK economic releases leaving the currency short of fresh support.
At the same time, UK government bond yields edged upwards, reviving concerns surrounding the country’s already fragile fiscal position.
Several Bank of England (BoE) policymakers are scheduled to speak today, including Governor Andrew Bailey. Any signals pointing towards an interest rate hike in November could lend support to the pound.
Euro (EUR) hits fresh lows amid debt crisis concerns
The euro (EUR) tumbled to new multi-month lows yesterday as French bonds resumed their recent decline, fuelling concerns that the Eurozone could be heading towards a debt crisis.
However, the EUR recovered from its weakest levels, with stronger-than-expected German industrial data potentially offering some support to the single currency.
Minutes from the European Central Bank’s (ECB) latest meeting are due to be published today, which could influence EUR movement. Nevertheless, concerns over Eurozone debt may remain the key driver for the common currency.
US dollar (USD) rises as risk aversion grows
The US dollar (USD) strengthened yesterday as a deterioration in market sentiment boosted demand for the safe-haven currency.
Higher government borrowing costs and rising energy prices unsettled investors, increasing the appeal of the American dollar.
Looking ahead to today, a modest increase in US initial jobless claims could weigh on USD. Meanwhile, shifts in broader risk sentiment may continue to influence the dollar.
Canadian dollar (CAD) choppy as oil prices fluctuate
The crude-linked Canadian dollar (CAD) lacked a clear direction yesterday as oil prices fluctuated.
With no major Canadian economic releases scheduled today, movements in crude prices could remain the main influence on CAD. If oil prices continue to rise, the Canadian dollar could find some support.
Australian dollar (AUD) edges lower as sentiment deteriorates
The Australian dollar (AUD) weakened slightly overnight as a risk-off environment put pressure on the currency.
New Zealand dollar (NZD) subdued amid risk aversion
The New Zealand dollar (NZD) was similarly subdued overnight as the deteriorating market mood weighed on the currency.
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.