Australian Dollar (AUD) Receives Mixed Support
The Australian Dollar (AUD) fluctuated through yesterday’s session as last week’s dovish decision from the Reserve Bank of Australia (RBA) continued to weigh upon trading sentiment.
Losses were countered, however, by an increasingly risk-on mood and upbeat data from China, which supported its proxy AUD.
Looking ahead, the ‘Aussie’ may find support tomorrow on October’s business confidence release, which is expected to climb on last month.
Pound (GBP) Bolstered by Risk-On Mood
The Pound (GBP) reversed its early losses on Monday as a risk-on mood supported Sterling.
GBP was also buoyed by the prospect of a Covid antiviral pill rollout – Britain has become the first country in the world to approve molnupiravir for drugs trialling at the end of the month.
Looking ahead, Brexit headwinds may weigh upon the Pound; Bank of England (BoE) Governor Andrew Bailey could also influence trading via tomorrow’s speech – his second this week.
Euro (EUR) Sentiment Dented by ECB Comments
The Euro (EUR) sank yesterday as European Central Bank (ECB) chief economist Philip Lane commented that the euro area is still confronted with weak medium-term inflation dynamics.
Mixed USD trading also affected the single currency, as a result of the strong negative correlation between EUR and USD.
Today’s German trade balance may influence forward trading, alongside economic sentiment and various ECB speeches.
US Dollar (USD) Slumps on High Risk Appetite
The US Dollar (USD) tumbled on Monday afternoon as a risk-on mood gripped currency markets.
Speakers for the Federal Reserve Bank struck an upbeat tone, forecasting 2022 rate hikes and a fall in unemployment.
US PPI data is likely to affect movement in the US Dollar exchange rates today, along with several speeches by Fed officials.
Canadian Dollar (CAD) Sinks on Lack of Data
The Canadian Dollar (CAD) slid down yesterday as a lack of data exposed the currency to losses.
Although oil prices rose, hopes of monetary policy tightening from the Bank of Canada (BoC) wavered in the wake of dovish decisions from other central banks.
Speeches tomorrow from the BoC’s Paul Beaudry and Governor Tiff Macklem may inspire further movement.
New Zealand Dollar (NZD) Lifts on Chinese Data, Lockdown Easing
The New Zealand Dollar (NZD) rose on Monday amidst a risk-on mood, supported by strength in the economy of its biggest trading partner: China.
Upbeat comments from NZ Prime Minister Jacina Ardern also boosted the ‘Kiwi’: Ardern has announced that some coronavirus restrictions in Auckland can be lifted from today.
Data Releases
Nov 8th 10:30 AUD NAB Business Confidence (Oct) 15
Nov 8th 17:00 EUR German Balance of Trade (Sep) € 17.7B
Nov 8th 20:00 EUR Eurozone ZEW Economic Sentiment Index (Nov) 18.5
Nov 8th 20:00 EUR German ZEW Economic Sentiment Index (Nov) 20
Nov 8th 22:50 USD Fed Bullard Speech N/A
Nov 8th 23:00 EUR ECB Lagarde Speech N/A
Nov 8th 23:30 USD PPI (Oct) 0.6%
Nov 9th 00:00 USD Fed Powell Speech N/A
Nov 9th 02:00 GBP BoE Gov Bailey Speech N/A
Nov 9th 02:35 USD Fed Daly Speech N/A
Nov 9th 03:10 CAD BoC Beaudry Speech N/A
Nov 9th 04:30 USD Fed Kashkari Speech N/A