Pound Sterling (GBP)
After a surprising warning issued by Bank of England (BoE) Governor Mark Carney to the EU, the Pound has been a fairly positive state against its regular peers today.
Carney was speaking as part of the BoE’s financial stability report, which offers a look back on the UK’s economic performance as well as how it could fare in the future.
In the latter case, Carney warned against EU leaders forcing a ‘Hard Brexit’ on the UK due to possible mutual damage, which was received positively by investors as signs of a strengthening Government position in negotiations.
Thursday’s key data release will be the manufacturing PMI for November, which is expected to show a slight rise on the month.
The Euro has opened trading in a position of strength and has largely cemented these gains due to some forecast-beating unemployment results from Germany.
Although the November unemployment rate remained at 6%, Euro demand still rose when it was shown that the number of unemployed persons had fallen by -5k, instead of the expected -3k.
In other Eurozone news, the November inflation rate flashes have shown a rise on the year but a reprint at 0.7% on the month instead of the forecast advance.
The day’s remaining Eurozone announcement will come from European Central Bank (ECB) President Mario Draghi, who is expected to make a speech in the early afternoon.
US Dollar (USD)
Having been bolstered by Monday’s better-than-expected manufacturing index on Tuesday, the US Dollar has since shed some of these earlier gains.
While Tuesday increased the likelihood of a December Fed interest rate hike, as well as rising Q3 US GDP growth, the US Dollar has been a somewhat unstable option overall today.
Given the current lack of negative US news, this shift is likely due to excess profit-taking on the part of investors.
This afternoon will bring the November ADP employment change, which is expected to rise, as well as key speeches from Fed officials Jerome Powell and Loretta Mester.
Australian Dollar (AUD)
Australian Dollar interest has dropped off today, with the AUD suffering in the wake of some missed forecasts for home sales and building permits.
Covering October, home sales fell on the month from 2.7% to -8.5%, while against expectations of a rise, the building permits result worsened from -9.3% to -12.6%.
Tonight will bring Australia’s AiG manufacturing index for November, which was expected to increase from 50.9 to 51.4 when last consulted.
New Zealand Dollar (NZD)
The New Zealand Dollar has rallied during trading today, although the latest national data has been pointing downwards when it comes to economic outlook.
The early ANZ business confidence figure for November has fallen from 24.5 to 20.5, while the Reserve Bank of New Zealand (RBNZ) has issued a warning that rising house prices and debt in the dairy industry may become economically-dangerous situations in the future.
In better news, the NZIER has estimated that New Zealand will be able to safely absorb the costs of the ‘isolated’ earthquake that hit the country earlier in the month.
Tonight will bring New Zealand’s terms of trade result for Q3, which is forecast to shift from -2.1% to -1.2%.
Canadian Dollar (CAD)
The Canadian Dollar has remained in a state of flux so far today, with the ongoing OPEC meetings making the price of oil a strong influencer on the CAD.
The meetings are hoped to result in an oil price production cut, which would result in the cost of oil rising considerably.
On the homefront, future Canadian Dollar movement could be caused by the afternoon’s GDP growth rate result for Q3, which has a rise predicted on both the quarter and the year.