Pound (GBP) uncertain as BoE decision looms
The pound (GBP) was mixed yesterday as markets largely ignored an upward revision to the UK’s final services PMI.
With the Bank of England (BoE) interest rate decision looming, GBP investors were reluctant to place aggressive bets on the pound.
Sterling could be on the back foot today, as some analysts expect that Donald Trump’s likely presidential victory could be bad for the UK economy.
Euro (EUR) mixed amid lack of data
The euro (EUR) traded without a clear direction yesterday amid a lack of market-moving Eurozone data.
In addition, a risk-on mood pressured the safer single currency while EUR’s negative correlation with the US dollar (USD) lent it support.
This morning the euro is under significant pressure as Trump looks set to secure a second term as president. A surging US dollar is weighing on EUR, while worries about 10% tariffs on European exports are also denting the common currency.
US dollar (USD) slides amid election uncertainty
The US dollar unravelled yesterday as uncertainty and a risk-on mood amid the US presidential election dampened USD’s appeal.
A stronger-than-forecast US services PMI in the afternoon failed to lift the ‘greenback’, with the PMI also revealing that price pressures are easing, thereby fuelling Federal Reserve interest rate cut bets.
Today, however, the US dollar has skyrocketed to multi-month highs as Donald Trump storms towards victory in the US presidential election.
Canadian dollar (CAD) dented by USD correlation
The Canadian dollar (CAD) slipped against its stronger rivals yesterday as CAD’s correlation with USD weighed on the ‘loonie’. However, rising oil prices lent the crude-linked currency some support.
Turning to today, the sharp upswing in the US dollar is pulling CAD exchange rates higher, with the ‘loonie’ shrugging off a decline in oil prices.
Australian dollar (AUD) rocked by US election
The Australian dollar (AUD) was volatile overnight as the US election results began to come in, with AUD sliding before managing to bounce back against some rivals.
New Zealand dollar (NZD) wobbles amid US politics
The New Zealand dollar (NZD) was also turbulent last night with markets reacting to the US presidential outcome.
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