Pound (GBP) struggles amid lack of data
The pound (GBP) lost ground against its stronger peers yesterday as a lack of UK data left the currency without much support.
In addition, investors seemed reluctant to take strong positions in Sterling ahead of the UK’s GDP figures, due out today.
So far this morning, the GDP data has failed to move Sterling, despite growth accelerating to 0.7% in the third quarter as expected. Could the pound attract support as the session unfolds?
Euro (EUR) dented by USD strength
The euro (EUR) weakened yesterday as the currency suffered from its negative correlation with the strengthening US dollar (USD).
In addition, a fresh rise in French government borrowing costs unnerved EUR investors, reigniting fears of a bond crisis in the Eurozone’s second-largest economy.
Amid an absence of Eurozone data today, the euro may struggle to find a clear direction.
US dollar (USD) boosted by Fed bets
The US dollar continued to climb yesterday amid expectations that the Federal Reserve could deliver back-to-back interest rate hikes over the next three months.
Following Tuesday’s hotter-than-forecast inflation data, markets continued to price in the possibility of a rapid hiking cycle from the Fed, which lifted the US dollar.
Today, the latest US initial jobless claims figure could influence USD. Could an uptick in benefits claims put pressure on the ‘greenback’?
Canadian dollar (CAD) finds footing as oil prices rise
The crude-linked Canadian dollar (CAD) was initially subdued yesterday, although it managed to tick higher later in the session thanks to a rise in oil prices.
With Canadian data still thin on the ground today, crude prices may remain the primary driver of CAD exchange rates. If oil continues to firm, the ‘loonie’ could attract support.
Australian dollar (AUD) stumbles amid risk-off mood
The Australian dollar (AUD) slipped overnight as a souring mood pressured the risk-sensitive currency.
New Zealand dollar (NZD) weakens in cautious trade
The New Zealand dollar (NZD) also trended lower last night amid the deterioration in market risk appetite.
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