Pound (GBP) choppy as markets digest jobs data
The pound (GBP) faced uncertain movement yesterday as markets digested the UK’s latest jobs report.
Although unemployment held steady, rather than rising as forecast, the data also contained signs of underlying weakness in the British labour market.
Turning to today, a slight rise in UK inflation in August has had little impact on GBP as it’s unlikely to prompt the Bank of England (BoE) to hike interest rates tomorrow.
Euro (EUR) mixed as German data disappoints
The euro (EUR) also struggled to find a clear directional bias yesterday following Germany’s latest ZEW economic sentiment index.
The indicator missed forecasts, disappointing EUR investors. However, it still pointed to a fifth consecutive improvement in September, with the index edging up to its highest level since February.
Today, an expected contraction in Eurozone industrial production in July could dent the common currency.
US dollar (USD) holds strong as markets eye Fed decision
The US dollar (USD) remained supported yesterday as a risk-averse mood and Federal Reserve interest rate hike bets continued to underpin the currency.
However, the ‘greenback’ also seemed to have hit a ceiling, with USD struggling to push higher ahead of the looming Fed decision.
A forecast recovery in US retail sales in August could underpin the US dollar today. However, gains may be limited ahead of the Fed announcement tonight.
Canadian dollar (CAD) falters as oil prices fluctuate
The commodity-sensitive Canadian dollar (CAD) found initial success yesterday amid rising oil prices before stumbling in the afternoon as crude fluctuated.
With Canadian data thin on the ground today, crude prices could drive CAD exchange rates once again. If oil continues to trade above $100 per barrel, the ‘loonie’ may maintain broad support.
Australian dollar (AUD) flat despite improving mood
The Australian dollar (AUD) traded sideways overnight as risk appetite improved but Australia’s leading index missed forecasts.
New Zealand dollar (NZD) weakens despite positive data
The New Zealand dollar (NZD) fell to fresh multi-week lows overnight, despite consumer confidence beating forecasts in the third quarter. NZD did manage to bounce off its worst levels, however.
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