Australian Dollar (AUD) Climbs amid Risk-Positive Trade
The Australian Dollar (AUD) strengthened yesterday as a risk-on market mood in the wake of the Federal Reserve’s interest rate decision boosted the risk-sensitive currency.
Markets were cheered by the prospect that the Fed is done raising interest rates. The subsequent upbeat mood lifted AUD, despite weaker Australian trade data.
Looking to today, a lack of Australian data may leave the ‘Aussie’ to trade on risk appetite once again.
New Zealand Dollar (NZD) Firms amid Cheery Mood
Likewise, the New Zealand Dollar (NZD) climbed yesterday as the bullish market mood boosted the currency’s appeal.
Risk sentiment could continue to drive NZD exchange rates today. Could an ongoing risk-on mood see the ‘Kiwi’ climb higher?
Pound (GBP) Wavers Lower following BoE Decision
The Pound (GBP) fluctuated during yesterday’s European trading hours as investors reacted to the Bank of England (BoE) interest rate decision.
While the BoE left interest rates unchanged, as expected, three policymakers voted for a rate hike. However, the bank also gave a bleak assessment of the UK’s economic outlook, which ultimately weighed on GBP.
Turning to today, the only UK data due out is the final services PMI this evening. Any surprise results could drive GBP volatility.
Euro (EUR) Enjoys USD Correlation
The Euro (EUR) firmed yesterday, thanks to the currency’s strong negative correlation with a weakening US Dollar (USD).
However, an uptick in German unemployment seemed to limit EUR’s upside.
The Eurozone’s jobless rate is the focus for EUR investors this evening. If it holds at a record low, the single currency could climb.
US Dollar (USD) Slumps as Fed Leaves Rates Unchanged
The US Dollar fell sharply yesterday after the Federal Reserve indicated that interest rates may have peaked.
Although Fed Chair Jerome Powell left the door open to another rate hike, his language was notably more dovish than it was following the Fed’s September decision. This fuelled speculation that the US central bank’s tightening cycle is over.
Tonight, the latest non-farm payrolls report is due out. A forecast slowdown in job creation could dent USD. However, if the data beats expectations – as it did last month – then the ‘Greenback’ could rally.
Canadian Dollar (CAD) Mixed as Oil Prices Waver
The crude-linked Canadian Dollar (CAD) was mixed yesterday. Oil prices fluctuated in a narrow range, leading the ‘Loonie’ to trade without a clear direction.
Looking forward, Canada’s unemployment rate is the focus for CAD investors. An expected uptick in joblessness could weigh on the Canadian Dollar.
Data Calendar
Nov 3rd 19:30 GBP Services PMI (Oct) 49.2
Nov 3rd 20:00 EUR Unemployment Rate (Sep) 6.4%
Nov 3rd 22:00 USD Fed Barr Speech
Nov 3rd 22:30 CAD Unemployment Rate (Oct) 5.6%
Nov 3rd 22:30 USD Non Farm Payrolls (Oct) 180,000