US Dollar

US Dollar Buoyed by Consumer Spending, Euro Falls as COVID-19 Cases Spike

Pound (GBP) Climbs as Industrial Orders Surge 

The Pound has slowly climbed today, bolstered by news this morning that British industrial orders surged in November to their highest levels since 1977. 

These gains may have been tempered by Brexit headwinds however, as EU negotiator Maroš Šefčovič chided the UK today over a lack of ‘clear political will’ to make talks over the Northern Ireland Protocol productive. 

N   A speech by Bank of England (BoE) governor Andrew Bailey will be in focus tomorrow. Investors will be watching the speech keenly after Bailey signalled, he may limit forward guidance in the future. Similar comments are likely to prompt further speculative bets on Sterling. 

Euro (EUR) Falls as COVID Sweeps Across Continent 

The Euro has fallen against its competitors today as falling business confidence in Germany and a spike in COVID-19 cases across the continent place pressure on the currency.  

 The continuing rise of COVID-19 cases could further harm the Euro’s chances as well as increase the chances of stagnation in the German economy later in the year. 

Looking forward to the rest of the week, Thursday will also see a speech by European Central Bank (ECB) President Christine Lagarde who has made clear that the central bank will not raise interest rates this year. 

US Dollar (USD) Bolstered by Jobless Data and Increased Consumer Spending 

The US Dollar has been boosted by the release of positive jobless data today. Figures showed a fall well below forecasts to 199K, the country’s lowest level since 1969.  

US consumer also impressed jumping 1.3% in October despite rising prices. The Federal Reserve will be watching this data closely for signs of a tightening labour market. 

Looking ahead, the Fed will this evening release the minutes from its latest meeting on monetary policy. Expect investors to be going over these with a fine-tooth comb for any hints as to future policy, with any highlights potentially boosting the safe-haven ‘Greenback’ even higher. 

Canadian Dollar (CAD) Subdued as Oil Prices Rise Following US Stockpile Release 

The Canadian Dollar has traded within a narrow range today, as investors pursue more risk-averse trading amid the fluctuating price of oil. The price of oil has continued to steadily rise following the announcement that the US would be releasing millions of barrels of oil in attempt to bring down prices.  

Looking ahead, it’s likely that the commodity-tied ‘Loonie’ will remain subdued as investors look to more risk-averse currencies. 

Australian Dollar (AUD) Rises as Price of Iron Ore soars 

The Australian Dollar (AUD) has risen against its rival currencies today following positive PMIs earlier this week and the soaring price of iron ore. The currency likely also saw a boost as Prime Minister Scott Morrison announced the re-opening of the country’s borders to international travel. 

Looking ahead, retail sales data released on Friday is forecast to show a rise for October of 2.5%. This further evidence of the country’s economic recovery may place further pressure on the Reserve Bank of Australia (RBA) to raise interest rates early, which in turn could prompt speculative bets on AUD.