Australian dollar (AUD) initially slips as market mood sours
The Australian dollar (AUD) stumbled yesterday as a souring market mood put pressure on the risk-sensitive ‘Aussie’.
However, the market mood recovered in the evening, helping AUD recoup losses against some of its weaker rivals.
With Australian economic data thin as the week draws to a close, risk appetite may once again drive AUD movement.
New Zealand dollar (NZD) dented by cautious trade
The New Zealand dollar (NZD) also softened during Thursday’s session, with the initial risk-off mood dampening NZD’s appeal.
Risk sentiment may remain the defining factor for the ‘kiwi’ today. Any shifts in the market mood could infuse the New Zealand dollar with volatility.
Pound (GBP) muted amid lack of data
The pound (GBP) traded mostly sideways yesterday as a lack of impactful UK data undermined the British currency.
Meanwhile, GBP investors seemed unfazed by a slight decline in UK consumer confidence reported by the British Retail Consortium (BRC).
Later tonight the Bank of England (BoE) publishes its latest Financial Stability Report. If the UK’s risk outlook has deteriorated in the wake of the Autumn Budget, the US presidential election, and renewed geopolitical concerns, GBP could struggle.
Euro (EUR) struggles despite rising economic sentiment
The euro (EUR) saw modest losses yesterday, despite an unexpected improvement in Eurozone consumer sentiment in November.
A smaller-than-expected acceleration in German inflation seemed to pressure EUR, although movement was limited ahead of tonight’s Eurozone figures.
The spotlight in the session ahead falls on the Eurozone’s consumer price index for November. With inflation expected to accelerate, the euro may gain ground this evening.
US dollar (USD) quiet amid Thanksgiving
The US dollar (USD) traded in a narrow range yesterday as US markets closed for the Thanksgiving holiday.
Meanwhile, a shifting market mood also saw the safe-haven currency struggle to find a clear direction.
US data is absent from the calendar today, potentially leaving the ‘greenback’ to trade on market risk dynamics.
Canadian dollar (CAD) buoyed by rising oil prices
Oil prices rose yesterday before trimming their gains in the evening, with the crude-linked Canadian dollar (CAD) enjoying a modest upside as a result.
Tonight, Canada’s third-quarter GDP figures are the focus for CAD investors. Could a slowdown in Canadian economic growth put the ‘loonie’ on the back foot?
Data releases
07:00 NZD ANZ Roy Morgan Consumer Confidence (Nov)
17:00 EUR German Retail Sales (Oct)
20:00 EUR Inflation Rate (Nov)
20:30 GBP Financial Stability Report
23:30 CAD GDP Growth Rate (Q3)