Australian dollar (AUD) wavers amid mixed market mood
The Australian dollar (AUD) got off to a positive start yesterday as the currency was supported by a broadly risk-on market mood.
However, the ‘Aussie’ then relinquished a good portion of these gains in overnight trade, amid a subsequent souring of market risk appetite.
Coming up, will a slowdown in Australia’s latest producer price index stoke Reserve Bank of Australia (RBA) interest rate cut speculation and drag on AUD exchange rates today?
New Zealand dollar (NZD) fluctuates amid uneven market mood
The New Zealand dollar (NZD) also fluctuated on Thursday as a result of the mixed market sentiment.
In the absence of any domestic data, movement in NZD exchange rates is likely to remain tied to market risk dynamics today.
Pound (GBP) buoyed as investors trim BoE rate cut bets
The pound (GBP) traded with modest gains yesterday, as GBP investors continued to trim their Bank of England (BoE) rate cut bets.
However, Sterling’s upside potential remained capped after the Confederation of British Industry’s (CBI) latest distributive trades index reported a startling drop in retail sales volumes this month.
Looking ahead, with UK data in short supply, the pound may struggle to find direction today.
Euro (EUR) undermined by USD strength
The euro (EUR) was pulled in two different directions on Thursday. Supporting EUR were comments from European Central Bank (ECB) policymaker Isabel Schnabel, who warned of a ‘bumpy last mile’ in returning Eurozone inflation to target.
At the same time, acting as a headwind for the single currency was its negative correlation with the US dollar (USD).
EUR investors will look to a speech by ECB Vice-President Luis de Guindos for fresh impetus today. Will a dovish outlook pull the euro lower?
US dollar (USD) recovers on weak US GDP print
The US dollar initially stumbled yesterday as a risk-positive market mood sapped the appeal of the safe-haven currency.
However, the ‘greenback’ then rallied in overnight trade after a weaker-than-expected US GDP print spooked investors and revived safe-haven demand.
Closing out this week’s session will be the publication of the latest US core PCE price index. Could a drop in the Federal Reserve’s preferred indicator for inflation apply some pressure to the US dollar?
Canadian dollar (CAD) slips on softer oil prices
The Canadian dollar (CAD) came under pressure on Thursday, as the commodity-linked currency was dented by a softening of oil prices.
Will a further weakening in crude prices keep the ‘loonie’ on the back foot today?