Australian Dollar (AUD) Wanes amid Timid Market Mood
Owing to a lack of data releases, the Australian Dollar (AUD) was left exposed to the shifting market mood during yesterday’s trade.
Over the course of the session, risk appetite ebbed and flowed, exerting pressure on the risk-sensitive ‘Aussie’.
The Reserve Bank of Australia’s (RBA) latest statement on monetary policy is due for release today. If this contains hawkish hints, AUD may strengthen.
New Zealand Dollar (NZD) Boosted by Upbeat Commodity Trade
The commodity-sensitive New Zealand Dollar (NZD) strengthened during Thursday’s trade as dairy prices climbed.
This allowed the ‘Kiwi’ to override a tepid market mood and a lack of data to rise against most major peers.
NZD exchange rates could trade in wide boundaries today, as investors react to October’s PMI data.
Pound (GBP) Stumbles as BoE’s Pill Dismisses Further Rate Hikes
The Pound (GBP) edged lower on Thursday following dovish comments from Bank of England (BoE) Chief Economist Huw Pill.
While his remarks were less dovish than earlier in the week, Pill stated that there was no need for additional tightening to bring down inflation. This led to pared-back interest rate hike bets, weighing on Sterling.
GBP could significantly weaken this evening, following the release of the UK’s third-quarter GDP data. The UK economy is forecast to have contracted by 0.1% on a quarterly basis, which could spark recession fears.
Euro (EUR) Restricted by Economic Gloom
Yesterday, the Euro (EUR) endured muted trade as economic concerns around the Eurozone continued to mount.
European Central Bank (ECB) policymakers have begun to warn of poor growth, with ECB Vice-President Luis de Guindos suggesting fourth-quarter stagnation.
Tonight, ECB President Christine Lagarde is due to deliver a speech. If she also expresses concerns about the Eurozone economy, EUR could slide.
US Dollar (USD) Mixed amid Increasing Jobless Claims
The US Dollar (USD) traded in a mixed capacity on Thursday amid a shifting market mood.
Jobless claims exerted pressure on the ‘Greenback’ in the afternoon, as claims from people unemployed for longer than two weeks increased more than forecast.
Overnight, the US Dollar could struggle for support if the Michigan consumer sentiment index edges lower as forecast.
Canadian Dollar (CAD) Buoyed by Oil Price Increase
The crude-linked Canadian Dollar (CAD) found limited success on Thursday thanks to rising oil prices. However, crude remained down significantly on the week, thereby limited CAD’s potential.
The ‘Loonie’ may trade in line with oil prices today due to a lack of data releases.
Data Releases
Nov 10th 10:30 AUD RBA Statement on Monetary Policy
Nov 10th 17:00 GBP GDP Growth Rate (Q3) -0.1%
Nov 10th 22:30 EUR ECB President Lagarde Speech
Nov 11th 01:00 USD Michigan Consumer Sentiment (Nov) 63.7