Pound extends downside amid bond market panic

Pound (GBP) slides amid bond market turmoil

The pound (GBP) faced ongoing selling pressure yesterday as the UK bond market selloff continued, with worries of low growth and higher debt rattling investors.

Calm returned to the gilt market in the afternoon, sparing Sterling from further losses. However, GBP remained down on the day.

With no notable UK economic data out today, investors may remain focused on UK bonds. Could more market panic see the pound extend its downside?

Euro (EUR) rangebound on mixed data

The euro (EUR) traded mostly sideways yesterday amid mixed data from the Eurozone, although it rose against its weaker peers.

While German trade and industrial data was stronger than expected, the latest Eurozone retail sales figure missed forecasts to show just 0.1% sales growth in November.

Today, economic data from the bloc is in short supply. Therefore, EUR movement may be muted.

US dollar (USD) firms amid gloomy trade

The US dollar (USD) traded with modest gains yesterday as a cautious market mood favoured the safe-haven currency.

However, USD investors were reluctant to place aggressive bets ahead of today’s potentially impactful payrolls data.

Looking ahead, the latest non-farm payrolls report is the focus for USD investors. Could strong job creation in the US boost the ‘greenback’ this afternoon?

Canadian dollar (CAD) buoyed by rising oil

The crude-linked Canadian dollar (CAD) rose against its weaker peers yesterday, thanks to a slight uptick in oil prices.

Canada’s latest unemployment rate is in the spotlight for CAD investors today. A rise in unemployment last month could weigh on the ‘loonie’.

Australian dollar (AUD) trades sideways in absence of data

The Australian dollar (AUD) was muted overnight amid a lack of economic data and a mixed market mood.

New Zealand dollar (NZD) flat amid muted trade

Likewise, quiet trading conditions kept the New Zealand dollar (NZD) confined to a narrow range last night.

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