Australian Dollar (AUD) Bolstered by Rise in Iron Ore Prices
The Australian Dollar (AUD) was pushed higher yesterday by a return of global risk appetite. An uptick in iron ore prices also boosted the ‘Aussie’.
AUD saw gains limited by a further rise in China’s Covid-19 case levels. Expectations of a slowdown in policy tightening from the Reserve Bank of Australia (RBA) also weighed on the currency.
With no significant data today, the ‘Aussie’ is likely to be driven primarily by its link to market risk appetite today.
New Zealand Dollar (NZD) Ticks Higher amid Risk-On Mood
The New Zealand Dollar (NZD) edged higher on Thursday. The ‘Kiwi’ rose off the back a of risk-on market mood.
A forecast positive reading of October’s manufacturing PMI could help to bolster NZD exchange rates today.
Pound (GBP) Leaps as Markets Regain Confidence in PM Sunak
The Pound (GBP) jumped on Thursday. Optimism over PM Rishi Sunak’s meeting with Irish Taoiseach Micheál Martini helping to underpin Sterling.
GBP saw its gains capped by the poor outlook for the UK economy, however. The confirmation of widespread industrial action also acted as headwinds for Sterling.
Poor GDP figures could prompt losses in the Pound if they print as forecast today.
Euro (EUR) Tumbles amid Warnings of Eurozone Recession
The Euro (EUR) slid yesterday. A return of risk appetite saw the single currency drop, although losses were limited by bets on further rate hikes from the European Central Bank (ECB).
The single currency’s negative correlation with the US Dollar also lent some support to EUR exchange rates.
Looking ahead, the final reading of Germany’s October inflation could lend support to the Euro if it bolsters ECB rate hike bets.
US Dollar (USD) Nosedives after US Inflation Cools
The US Dollar (USD) tumbled on Thursday after the latest US inflation figures. A risk-on mood also prompted losses for the safe-haven ‘Greenback’.
The cooler inflation figures also saw markets reduce their bets on more aggressive interest rate hikes from the Federal Reserve. This also weighed on USD.
Looking ahead, upbeat US consumer sentiment figures could lend support to USD today.
Canadian Dollar (CAD) Drops Despite Oil Price Recovery
The Canadian Dollar (CAD) slipped on Thursday despite a recovery in crude oil prices. CAD’s positive correlation with the US Dollar (USD) as well as a downturn in government bond yields pulled the currency lower.
Crude oil prices may continue to rise today, but will this be able to revive the ‘Loonie’?
Data Releases
Nov 11th 07:30 NZD Business NZ PMI (Oct) 51.5
Nov 11th 17:00 EUR German Inflation Rate (Oct) 10.4%
Nov 11th 17:00 GBP GDP (Sep) -0.4%
Nov 11th 17:00 GBP GDP Growth Rate (Q3) -0.5%
Nov 11th 17:00 GBP Balance of Trade (Sep) £-6.8bn
Nov 12th 01:00 USD Michigan Consumer Sentiment (Nov) 59.5