[author: Katie Keith]
Pound (GBP) licks wounds following UK CPI
The pound (GBP) was mixed yesterday as a lack of new data left GBP investors to dwell on Wednesday’s consumer price index.
While Sterling was able to rally from its lowest levels, the prospect of more interest rate cuts from the Bank of England (BoE) meant GBP failed to recoup the bulk of its post-inflation losses.
Sterling is rallying this morning after the latest UK retail sales figures beat forecasts. Sales growth increased by 0.3% in September, rather than contracting 0.3%, suggesting that the UK economy is stronger than anticipated.
Euro (EUR) slips as ECB lowers borrowing costs
The euro (EUR) fell yesterday as the European Central Bank (ECB) delivered its third interest rate cut of the year.
Although the cut was expected, EUR still faced selling pressure as the ECB said the disinflationary process is ‘well on track’. In addition, a softer-than-expected final CPI reading contributed to EUR’s weakness.
Today, the common currency could remain subdued in the wake of the ECB rate cut and amid a lack of fresh Eurozone data.
US dollar (USD) mixed despite upbeat retail sales
The US dollar (USD) lacked a clear direction yesterday, with the ‘greenback’ trading in a wide range against its peers.
While a modestly risk-on market mood undermined the safe-haven currency, stronger-than-expected US retail sales growth boosted USD.
Later this afternoon, three Federal Reserve policymakers are due to speak. Could hints at ongoing interest rate cuts dampen USD’s appeal?
Canadian dollar (CAD) trends lower amid weak oil prices
The crude-linked Canadian dollar (CAD) softened against its stronger rivals yesterday as oil prices held near their lowest levels since the start of the month.
Canadian economic data remains thin on the ground today. Therefore, oil price dynamics may drive most movement in CAD.
Australian dollar (AUD) buoyed by risk-on mood
The Australian dollar (AUD) ticked higher last night as an upbeat market mood underpinned the risk-sensitive ‘Aussie’.
New Zealand dollar (NZD) flat despite risk appetite
The New Zealand dollar (NZD) was unable to gain ground yesterday, with the ‘kiwi’ trading sideways overall, despite the positive mood in markets..
