Pound (GBP) uncertain amid BoE comments
The pound (GBP) wavered yesterday as an ongoing lack of UK data saw Sterling continue to trade without a clear directional bias.
Remarks from Bank of England (BoE) policymaker Alan Taylor may have added to the uncertain movement. Taylor made the case for more interest rate cuts, but also said he believes rates could be close to neutral.
Turning to today, the pound could enjoy support after the UK’s latest GDP data beat forecasts. The British economy expanded 0.3% in November, more than the expected 0.1% growth.
Euro (EUR) wobbles amid US-Denmark talks
The euro (EUR) traded without a clear direction yesterday as Greenlandic and Danish officials travelled to the US for high-stake talks on the future of Greenland.
Hopes that cooler heads will prevail were offset somewhat by continued pressure from US President Donald Trump, who posted hawkish messages on social media ahead of the meeting.
Germany’s full-year GDP growth rate is due out today, with the data potentially driving EUR movement. If the Eurozone’s largest economy barely grew last year, the common currency could struggle to attract buyers.
US dollar (USD) recovers on upbeat sales data
The US dollar (USD) initially weakened yesterday as falling US Treasury yields dragged on the currency.
However, USD was able to recoup its losses in the afternoon, thanks to a larger-than-forecast rebound in US retail sales in November and signs of stubborn producer price inflation.
Looking forward, last week’s initial jobless claims figure could impact USD today. Will a forecast rise in claims put pressure on USD?
Canadian dollar (CAD) choppy despite higher crude prices
The crude-linked Canadian dollar (CAD) was volatile yesterday, as a rise in oil prices was offset by ongoing concerns over the continued deterioration in US-Canada relations.
CAD could remain choppy today, if geopolitical tensions and oil price movements continue to drive uncertainty.
Australian dollar (AUD) mixed as data and market mood compete
The Australian dollar (AUD) wobbled overnight. High consumer inflation expectations supported AUD while a limited appetite for risk undermined the ‘Aussie’.
New Zealand dollar (NZD) slips as risk appetite fades
The New Zealand dollar (NZD) softened slightly during last night’s Asian session as the global market mood soured.
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