Pound (GBP) stable ahead of flood of data
The pound (GBP) treaded water at the start of this week’s session as GBP investors braced for a busy week of UK data.
Over the next few days, the UK will publish PMI, inflation and retail sales data, with the Bank of England (BoE) also set to deliver its final interest rate decision of the year.
In the meantime, the UK’s latest jobs data may could have a mixed impact on the pound today. While unemployment rose to a four-year high in October, wage growth cooled less than expected.
Euro (EUR) steady as industrial production ticks up
The euro (EUR) traded sideways on Monday in the wake of the Eurozone’s latest industrial production figures.
Factory output improved in line with expectations in October, with production growth rising from 0.2% to 0.8%, easing concerns over the Eurozone’s recent manufacturing slump.
The focus for EUR investors today will be on the Eurozone’s latest PMIs. Economists forecast growth in the bloc’s private sector will have continued to accelerate this month, potentially providing a boost for the euro.
US dollar (USD) flat as markets brace for economic releases
The US dollar (USD) was in a holding pattern at the start of this week, with USD investors erring on the side of caution ahead of several high-impact domestic economic releases.
USD demand was also limited by the latest Empire State manufacturing index, which printed well below forecasts.
The spotlight today will be on the latest US payrolls data. If November’s data disappoints, it could bring forward bets for the next interest rate cut from the Federal Reserve and see the US dollar test new lows.
Canadian dollar (CAD) muted as inflation undershoots expectations
The Canadian dollar (CAD) was subdued on Monday, after Canada’s consumer price index fell short of expectations in November, with inflation holding at 2.2% against forecasts it would accelerate to 2.3%.
In the absence of any notable domestic data, movement in the ‘loonie’ is likely to be linked to oil price dynamics today. If oil prices continue to slide, CAD demand is likely to falter.
Australian dollar (AUD) dented by deteriorating consumer confidence
The Australian dollar (AUD) stumbled overnight amid a surprise drop in Australian consumer confidence in December. However, the ‘Aussie’ managed to bounce off its lowest levels.
New Zealand dollar (NZD) wavers in tandem with AUD
Likewise, the New Zealand dollar (NZD) fell before clawing back its losses overnight, as NZD traded in tandem with AUD.
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