Rising Eurozone inflation to boost the euro?

Pound (GBP) muted amid lack of data

The pound (GBP) traded mostly sideways yesterday as a lack of impactful UK data muted the British currency.

Meanwhile, GBP investors seemed unfazed by a slight decline in UK consumer confidence reported by the British Retail Consortium (BRC).

Later this morning the Bank of England (BoE) publishes its latest Financial Stability Report. If the UK’s risk outlook has deteriorated in the wake of the Autumn Budget, the US presidential election, and renewed geopolitical concerns, GBP could struggle.

Euro (EUR) struggles despite rising economic sentiment

The euro (EUR) saw modest losses yesterday, despite an unexpected improvement in Eurozone consumer sentiment in November.

A smaller-than-expected acceleration in German inflation seemed to pressure EUR, although movement was limited ahead of this morning’s Eurozone figures.

The spotlight in the session ahead falls on the Eurozone’s consumer price index for November. With inflation expected to accelerate, the euro may gain ground today.

US dollar (USD) quiet amid Thanksgiving

The US dollar (USD) traded in a narrow range yesterday as US markets were closed for the Thanksgiving holiday.

Meanwhile, a shifting market mood also saw the safe-haven currency struggle to find a clear direction.

US data is absent from the calendar today, potentially leaving the ‘greenback’ to trade on market risk dynamics.

Canadian dollar (CAD) buoyed by rising oil prices

Oil prices rose yesterday before trimming their gains in the afternoon, with the crude-linked Canadian dollar (CAD) enjoying a modest upside as a result.

This afternoon, Canada’s third-quarter GDP figures are the focus for CAD investors. Could a slowdown in Canadian economic growth put the ‘loonie’ on the back foot?

Australian dollar (AUD) mixed amid lack of data

The Australian dollar (AUD) traded without a clear direction overnight as a mixed market mood and lack of Australian data left the currency rudderless.

New Zealand dollar (NZD) rises as consumer confidence hits three-year high

The New Zealand dollar (NZD) strengthened overnight after New Zealand’s consumer confidence index beat forecasts to hit a three-year high in November.