The Pound is experiencing mixed trading against the Euro and other major peers as volatility shakes up the market. Sterling found support from the release of a report which showed that unemployment in the UK fell to 6%. With a lack of domestic market moving data due for release today, Pound movement will depend on data out of the Eurozone and US.
The US Dollar rallied against several peers as it shrugged off disappointing retail sales and wholesale pricing reports. The weak data initially caused investors to focus on the timing of the Federal Reserve’s interest rate rise and overlook poor data from the Eurozone. As Thursday’s session began traders turned their attention to the day’s US jobless claims data which they are hoping will come in positively.
The Euro fell against the Pound and other peers early in the European session as traders looked ahead to the release of the latest Eurozone Balance of Trade and Inflation data. If inflation in the currency bloc shows signs of improving, the Euro is likely to rise as concerns over deflation will ease.
The ‘Aussie’ briefly touched a two-week high against the US Dollar but later declined as sentiment towards the US currency improved ahead of the release of Jobless Claims and production reports. Geopolitical concerns and weakening commodity prices once again began to weigh on riskier assets. Also putting pressure on the currency was the release of a Consumer Inflation Expectation report which showed a fall from the previous month.
New Zealand Dollar
The New Zealand Dollar managed to advance after the latest Fonterra GlobalDairyTrade auction showed that dairy prices rallied from a five-year low. Dairy goods are New Zealand’s most traded export.
The ‘Loonie’ fell to its lowest level since 2009 after it was caught up in a sell-off ensnaring anything associated with crude oil. Prices of the commodity continue to weaken, raising concerns over the impact the price drop will have on the wider economy.
South African Rand
The Rand joined other emerging-market and commodity-based currencies as they tended lower. An improvement in sentiment towards the US Dollar and concerns over the global economy were the major factors weighing upon the South African currency.
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