Australian Dollar (AUD) Volatile amid Fluctuating Mood
The Australian Dollar (AUD) initially stumbled yesterday, with the risk-sensitive currency struggling to attract support amid a cautious market mood.
However, AUD exchange rates then rebounded in overnight trade as market risk appetite recovered.
Coming up, today will see the publication of Australia’s latest retail sales figures. Expect to see the ‘Aussie’ slide if sales growth slowed in line with forecasts last month.
New Zealand Dollar (NZD) Fluctuates in Mixed Trade
The New Zealand Dollar (NZD) also traded in a wide range yesterday as it fluctuated in line with market risk appetite.
Looking ahead, movement in the ‘Kiwi’ may be limited today, as NZD investors brace for the Reserve Bank of New Zealand’s (RBNZ) interest rate decision on Wednesday.
Pound (GBP) Supported by Hawkish BoE Expectations
The Pound (GBP) ticked higher on Monday as it carried through the momentum from the end of last week’s session.
This saw Sterling supported by Bank of England (BoE) interest rate expectations, following a series of hawkish comments from BoE policymakers last week.
One of these policymakers, Dave Ramsden is scheduled to speak later this morning. Could the Pound extend its gains if Ramsden repeats his suggestion that more monetary tightening may be needed to bring UK inflation under control?
Euro (EUR) Slides on ECB Lagarde Comments
The Euro (EUR) ticked lower at the start of this week, following comments from European Central Bank (ECB) President Christine Lagarde.
Lagarde warned that the Eurozone economy remained weak and suggested there is considerable uncertainty regarding the medium-term outlook for inflation.
Coming up, the Euro could strengthen later this evening as Germany’s latest consumer confidence index is forecast to report an improvement in household morale going into December.
US Dollar (USD) Undermined by Risk-On Flows
The US Dollar (USD) trended broadly lower on Monday as a bullish market mood limited demand for the safe-haven currency.
Adding to the pressure on the ‘Greenback’ was a modest drop in US Treasury yields through the US trading session.
Looking ahead, the US Dollar may remain on the defensive today as the latest CB consumer confidence index is expected to report that US household morale deteriorated this month.
Canadian Dollar (CAD) Subdued as Oil Prices Weaken
The Canadian Dollar (CAD) ticked lower at the start of this week as the commodity-linked currency was undermined by a modest fall in oil prices.
In the absence of any market moving data, it’s likely movement in the ‘Loonie’ will remain tied to oil price dynamics today. Will a further decline lead CAD exchange rates to weaken?
Data Releases
Nov 28th 10:30 AUD Retail Sales (Oct) 0.1%
Nov 28th 11:00 GBP BoE Ramsden Speech
Nov 28th 17:00 EUR German Consumer Confidence (Dec) -27.9
Nov 29th 01:00 USD Consumer Confidence (Nov) 101