Pound (GBP) uncertain amid absence of data
The pound (GBP) was mixed yesterday, firming against some of its safer rivals thanks to a cheery market mood while struggling against riskier peers.
Meanwhile, a lack of British data releases muted GBP. As a result, the mixed movement facing the pound was limited in scope.
UK economic data remains in short supply today, potentially leaving the pound exposed to wider market trends.
Euro (EUR) slides as French PM resigns
The euro (EUR) weakened yesterday as French Prime Minister François Bayrou resigned after losing Monday’s confidence vote.
Bayrou’s resignation has reignited concerns about the political crisis facing the Eurozone’s second-largest economy, which in turn weighed on EUR sentiment.
Turning to today, the euro may be muted as EUR investors await tomorrow’s policy announcement from the European Central Bank (ECB).
US dollar (USD) rebounds from multi-week lows
The US dollar (USD) started yesterday’s session on the back foot, slipping to multi-week lows amid a risk-on market mood and ongoing post-payroll headwinds, before some dip-buying helped USD recover lost ground.
The ‘greenback’ was able to hold on to its recovered gains in the afternoon, despite the latest non-farm payrolls revision showing that the US economy added 911,000 fewer jobs in the year to March 2025.
Looking ahead, the latest US producer price index could impact USD today. If factory gate inflation in America eased last month, the ‘greenback’ could soften.
Canadian dollar (CAD) recovers as oil prices rise
The Canadian dollar (CAD) initially weakened in tandem with the US dollar yesterday, before rising oil prices helped the crude-linked currency bounce back.
Canadian economic data is absent from the calendar today, which may leave the ‘loonie’ tied to oil prices. A continued uptick in crude may lift CAD exchange rates.
Australian dollar (AUD) climbs amid risk-positive trade
The Australian dollar (AUD) strengthened overnight, striking multi-week highs against some peers, as a risk-on mood boosted the ‘Aussie’.
The upside also came amid speculation that China will ramp up economic stimulus measures, after data showed consumer prices fell 0.4% in August.
New Zealand dollar (NZD) buoyed by risk-on flows
The New Zealand dollar (NZD) also gained ground overnight amid the upbeat market mood.
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