Pound (GBP) buoyed by hawkish BoE decision
After a subdued start to the session, the pound (GBP) rallied yesterday in the wake of the Bank of England’s (BoE) interest rate decision.
The bank voted unanimously to tighten policy, with one official voting for a larger rate hike. The BoE’s accompanying commentary also hinted at additional increases in the coming months.
A speech from BoE Chief Economist Huw Pill could lift Sterling today, if he signals support for further interest rate hikes.
Euro (EUR) wavers despite positive data
The euro (EUR) fluctuated yesterday, as the currency’s strong correlation with the US dollar (USD) saw it face uncertain movement.
Rising German factory orders and Eurozone producer prices provided the common currency with some upside, but these releases failed to meaningfully lift EUR.
EUR is uncertain again today as an unexpected rise in German factory orders is offset by a stronger US dollar. A forecast contraction in Eurozone retail sales could weigh on the single currency later this morning.
US dollar (USD) recovers as risk aversion sets in
The US dollar initially softened yesterday amid a risk-on mood and the aftermath of the mid-term elections.
However, the ‘greenback’ managed to regain ground later in the session as a fading appetite for risk saw investors favour the safe-haven currency.
The latest US non-farm payrolls figure could determine USD’s direction today. An expected acceleration in jobs growth could support the ‘greenback’, while the currency could weaken if the data misses forecasts.
Canadian dollar (CAD) choppy despite oil price rebound
The crude-linked Canadian dollar (CAD) faced turbulence yesterday, with the currency unable to capitalise on a recovery in oil prices.
Turning to today, Canada's latest jobs report is the focus for CAD investors. Could positive data lend the ‘loonie’ support?
Australian dollar (AUD) slides in risk-averse trade
The Australian dollar (AUD) slumped last night amid a sell-off in global equity markets, with investors concerned that the Democrats’ victory in the mid-terms could slow the AI investment boom.
New Zealand dollar (NZD) weakens amid cautious mood
The New Zealand dollar (NZD) also fell during Friday’s Asian trading session amid the risk-off market mood.
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