United States Dollar:
The dollar recovered yesterday as investors decided to lock in some profits after the run of weak US data on Wednesday. As it was a public holiday, there wasn’t any data yesterday from America. There wasn’t much by way of UK economic data either, meaning that there was nothing to stop the dollar bids gathering momentum. GBP/USD has fallen from 1.58+ since yesterday morning, and opens at 1.5685 today. In other news yesterday, OPEC announced that it would be leaving production quotas unchanged, and the price of oil fell again, down to $68 a barrel. The oil-production linked currencies, such as the CAD, felt the impact. In terms of data, it’s a similar day to yesterday – there’s nothing due from either the UK or US – GBP/USD opens at 1.5685.
Euro:
The dollar has strengthened versus the euro, too. After starting the European session yesterday at 1.2520, the pair has since fallen to a low of 1.2430, where it opens this morning. German CPI (inflation) data printed in line with market expectations yesterday, although it was still flat at 0.0% m/m. German Unemployment Change was slightly more positive, showing that the country’s jobless rate fell to a record low in November by 14,000. It provided a slight boost to the single currency in the morning, but USD bids dominated as the days went on.
European inflation data is due today, and will be eyed closely. German retail sales and French Consumer Spending data have already been released this morning, the latter coming in weaker than forecasts and the former stronger.
Aussie and Kiwi Dollars:
Both AUD and NZD have fallen versus the dollar, although this doesn’t come as a huge surprise given the broad dollar strength. ANZ consumer confidence data from NZ was stronger than last month’s reading, but it didn’t do the kiwi any favours; it continued to drift lower through the overnight session. Both GBP/AUD and GBP/NZD are slightly higher as a result, and open the London session at 1.84465 and 2.0020.
Data releases for the next 24 hours:
AUD: No data
EUR: Italian Monthly Unemployment Rate, Italian Quarterly Unemployment Rate, CPI Flash Estimate y/y, Unemployment Rate, Italian Prelim CPI m/m
GBP: No data
NZD: No data
USD: No data
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