Pound (GBP) unsure following UK jobs report
The pound (GBP) was mixed yesterday, although it managed to rise against its weaker peers, as GBP investors responded to the latest UK labour market overview.
The data showed a slight slowdown in the British jobs market, but this wasn’t enough to impact expectations for an interest rate hold from the Bank of England (BoE) on Thursday.
So far this morning the pound is steady following the UK’s consumer price index. Inflation printed as expected in August, with the headline rate holding at 3.8%.
Euro (EUR) buoyed by positive German data
The euro (EUR) surged higher yesterday amid an unexpected improvement in Germany’s ZEW economic sentiment index.
The common currency also benefitted from weakness in the US dollar (USD), with which the euro is negatively correlated.
European Central Bank (ECB) President Christine Lagarde is due to speak today. Any hawkish remarks could underpin EUR exchange rates.
US dollar (USD) plunges amid Fed independence concerns
The US dollar slumped to multi-month lows yesterday, and a four-year low against the euro, as the US Senate narrowly cleared Stephen Miran to join the Federal Reserve’s board of governors in time for this week’s vote.
Miran is an ally of President Donald Trump, who has pressured the Fed to slash interest rates. The prospect of rapid rate cuts paired with concerns about the Fed’s independence weighed heavily on USD.
The ‘greenback’ may be muted today as USD investors brace for this evening’s Federal Reserve interest rate decision, where an expected rate cut could drag the American dollar lower.
Canadian dollar (CAD) uncertain amid mixed factors
The crude-linked Canadian dollar (CAD) was mixed yesterday. While a modest uptick in inflation and oil prices supported the ‘loonie’, CAD’s positive correlation with USD saw it slip against stronger rivals.
The Bank of Canada (BoC) is widely expected to cut interest rates at its policy meeting today, which could see CAD slip later in the session.
Australian dollar (AUD) slips following downbeat data
The Australian dollar (AUD) softened overnight after Australia’s leading economic index showed an unexpected deterioration in August.
New Zealand dollar (NZD) stumbles as USD recovers
The New Zealand dollar (NZD) also softened overnight as a recovery in the US dollar weighed on NZD.
Never miss a movement. Create a free account with Currencies Direct to get the latest currency news delivered straight to your inbox. You can also set up rate alerts and check live rates 24/7.
