Pound News: Sterling Rally Runs Out of Steam on UK Job Market Concerns
The Pound was unable to hold its best levels yesterday, despite rising hopes that next month’s UK election could lead to a relatively soft Brexit. Sterling was weighed by Britain’s latest job market report, amid news that wages and job vacancies were worse than expected.
Britain’s October inflation rate report, due today, could cause Bank of England (BoE) interest rate cut bets if it disappoints. The data may be brushed over if unsurprising though, amid focus on UK election uncertainties.
Euro News: Signs of Eurozone Rebound Only Offer Limited EUR Support
Following weeks of poor or mixed Eurozone data, yesterday’s German and Eurozone economic sentiment stats from ZEW came in well above expectations. Still, uncertainty over whether this apparent rebound would last limited the Euro’s benefit from the data.
A slew of influential Eurozone ecostats could boost the Euro further in the coming days if it boosts hopes of a Eurozone economic recovery. German inflation and Eurozone industrial production will drive movement today.
US Dollar News: USD Investors Awaiting US-China Trade Developments
Key US data is due for publication this week, but the primary cause of US Dollar movement in recent sessions has been US-China trade developments. The US Dollar strengthened for most of yesterday on hopes that a preliminary US-China trade deal was within reach.
Reaction to last night’s trade comments from US President Trump will continue to drive the US Dollar today. This afternoon’s upcoming US inflation data and comments from Fed Chairman Jerome Powell could impact Federal Reserve speculation and the US Dollar as well.
Canadian Dollar News: CAD Rebounds on Trade Hopes Following Tumble
The Canadian Dollar rebounded yesterday, amid hopes that US-China trade relations were improving, as well as stronger prices of oil, Canada’s most lucrative export. It followed days of losses in reaction to some weaker than expected Canadian job stats last week.
No notable Canadian data is due until later in the week, so the Canadian Dollar will continue to be driven by US-China trade developments today.
Australian Dollar News: Central Bank Speculation Keeps Lid on AUD
Investors were hesitant to buy the Australian Dollar much yesterday, despite some stronger than expected Australian business confidence data from NAB. Market concerns about upcoming Australian job stats and how they might influence RBA speculation weighed on the ‘Aussie’.
Australian Dollar investors may be hesitant to react to this morning’s Australian wage price stats too much until Australia’s other job market figures are published tomorrow. These have strong potential to influence the Reserve Bank of Australia’s (RBA) tone if they surprise markets.
Wednesday, 13th November
Australian Westpac Consumer Confidence
01:30 Australian Wage Prices
07:00 German Inflation Rate
09:30 UK Inflation Rate
10:00 Eurozone Industrial Production
13:30 US Inflation Rate
16:00 Fed Chairman Powell Testimony