Pound (GBP) supported by UK-EU food deal
The pound (GBP) edged up against its weaker rivals yesterday as GBP investors cheered the news that the UK and the EU had agreed to ease some restrictions on food imports and exports.
However, Sterling found its upside limited amid a lack of British data and an uptick in UK government borrowing costs.
The UK’s final services PMI for October is scheduled for release this morning. Confirmation of an acceleration in activity could boost GBP.
Euro (EUR) muted amid lack of data
The euro (EUR) traded without a clear trajectory yesterday amid a lack of Eurozone economic data.
Additionally, EUR investors seemed content to wait on the sidelines ahead of today’s Eurozone consumer price index.
The CPI figures for October could lend the common currency some much-needed support today. A forecast rise in inflation could boost bets on further monetary tightening from the European Central Bank (ECB).
US dollar (USD) rangebound amid mid-term elections
The US dollar (USD) found itself trapped in a narrow range yesterday as Americans headed to the polls in the mid-term elections.
As the results could have big implications for US fiscal policy, investors were wary of placing aggressive bets on USD as voting began.
With many of the results now announced, the Democrats have won both the House and Senate, seizing control of Congress. This has seen the US dollar face pressure this morning.
Canadian dollar (CAD) fluctuates in tandem with oil
The crude-linked Canadian dollar (CAD) traded in line with oil prices yesterday, initially firming before retreating later in the session amid uncertainty over US-Iran diplomacy.
Oil price dynamics may continue to drive CAD exchange rates today, with US-Iran tensions potentially triggering fresh volatility.
Australian dollar (AUD) recovers amid risk-on mood
The Australian dollar (AUD) fell to multi-week lows last night before rebounding as market risk appetite improved.
New Zealand dollar (NZD) tumbles as unemployment rises
The New Zealand dollar (NZD) also hit multi-week lows overnight, with the ‘kiwi’ slumping after New Zealand unemployment unexpectedly rose in the third quarter of 2026.
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