Australian dollar (AUD) mixed as commodity prices decline
After an initial uptick at the start of the week, the Australian dollar (AUD) then trended lower as the session unfolded.
The resource-linked ‘Aussie’ was dented by falling commodity prices, although it avoided losses against its weaker peers thanks to an upbeat market mood.
Turning to today, a lack of economic data could leave the risk-sensitive Australian dollar to trade on market risk appetite.
New Zealand dollar (NZD) unclear amid mixed factors
The New Zealand dollar (NZD) also saw uncertain movement on Monday, with a risk-on mood and weaker commodities pulling NZD in different directions.
With the Reserve Bank of New Zealand (RBNZ) interest rate decision looming and economic data for NZD thin on the ground, the ‘kiwi’ could be subdued today.
Pound (GBP) wavers despite BoE remarks
The pound (GBP) had a mixed start to the week, despite some hawkish comments from Bank of England (BoE) Deputy Governor Clare Lombardelli.
Although the policymaker said it was ‘too early to declare victory on inflation’, Sterling struggled to sustain any upside momentum amid concerns about the UK economy.
Amid a lack of more impactful data, the Confederation of British Industry’s (CBI) latest distributive trades survey could impact the pound tonight. Could another contraction in sales volumes hurt GBP?
Euro (EUR) boosted as US tariff fears ease
The euro (EUR) began the week on a strong note as Donald Trump’s pick for Treasury Secretary announced over the weekend helped ease fears of damaging tariffs on the Eurozone.
Trump’s choice of Scott Bessent to lead the Treasury was interpreted by analysts as a signal that the incoming US administration might adopt a softer stance on EU trade taxes than initially feared.
Eurozone economic data is in short supply today, which could leave EUR movement muted.
US dollar (USD) slips amid upbeat mood
The safe-haven US dollar (USD) fell on Monday as markets welcomed Trump’s choice of Bessent to head the US Treasury, leading to a cheery tone.
In addition, Bessent’s nomination led to a slight pullback in US inflation expectations, thereby increasing bets on more Federal Reserve interest rate cuts.
Looking ahead, market risk dynamics could determine USD movement today. If geopolitical concerns worry investors, the safe-haven US dollar could gain ground.
Canadian dollar (CAD) falls on softer oil and USD
The Canadian dollar (CAD) retreated against most of its rivals yesterday, as the currency’s positive corelation with both the US dollar and oil prices pressured CAD.
Oil prices may drive the commodity-linked ‘loonie’ today. Could a renewed upside in oil lift CAD?
Data releases
21:00 GBP CBI Distributive Trades (Nov)