Pound (GBP) softens in absence of data
The pound (GBP) trended broadly lower yesterday as a lack of impactful UK data left the currency exposed to losses.
However, the downside in GBP was limited due to the quiet economic calendar.
With no UK data due out during today’s session, Sterling may struggle to find a clear trajectory.
Euro (EUR) mixed following CPI release
The euro (EUR) traded without a clear direction yesterday as markets reacted to a mixed Eurozone consumer price index.
While the core inflation measure was slightly softer than anticipated, the data did not see Tuesday’s steep drop in German inflation reflected in the wider Eurozone.
An unexpected surge in Germany factory orders could support EUR today, while a strong Eurozone economic sentiment index later could bring additional tailwinds.
US dollar (USD) wavers amid uneven data
The US dollar (USD) also saw some choppy movement yesterday as a shifting market mood saw the safe-haven currency stumble before finding its footing.
Mixed US data also contributed to the uncertainty, with a stronger services PMI being offset by weaker jobs data and falling factory orders.
USD could face pressure today, if initial jobless claims in the US rose as expected last week. Elsewhere, market sentiment may influence the ‘greenback’.
Canadian dollar (CAD) rebounds after oil-induced dip
The crude-linked Canadian dollar (CAD) briefly touched multi-week lows against some rivals yesterday, following a drop in oil prices, before a strong Ivey PMI survey for December helped to shore up CAD demand.
Canadian data is hard to come by today. Therefore, oil price movements could drive CAD exchange rates.
Australian dollar (AUD) drops as exports shrink
The Australian dollar (AUD) fell overnight as a 2.9% slump in Australian exports in November weighed on AUD.
New Zealand dollar (NZD) slides in risk-off trade
The New Zealand dollar (NZD) also weakened last night, as a risk-off mood swept markets and dampened NZD demand.
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