Pound Sterling (GBP)
With the incoming Autumn Statement dominating market sentiment in the UK, the Pound has dropped off today, owing partly to mass profit-taking on yesterday’s Brexit boost.
The late rally was triggered mainly by hopes of a ‘Transitional Brexit’, where the UK would remain stable in the single market for a number of years before fully leaving the EU.
Today’s public sector net borrowing stats have proven better-than-expected, although the new deficit result is still of a significant size.
Further UK data to watch out for today will include the late morning’s Confederation of British Industry (CBI) industrial trends for orders result, which is expected to shift from -17 to -12.
Following on from Monday afternoon’s late speech from European Central Bank (ECB) President Mario Draghi, the Euro has been in low demand today.
This comes after Draghi indicated that the ECB would be maintaining 0% base interest rates for the foreseeable future, given the present global economic uncertainties and push to raise inflation in the Eurozone.
The afternoon could see the Euro creep up against its peers, given that the Eurozone-wide consumer confidence flash for November is forecast to ‘improve’ from -8 to -7.6.
US Dollar (USD)
The US Dollar has declined during trading today, owing to the latest comments from Donald Trump already showing a move towards a more protectionist US.
The main focus has been on the Trans-Pacific Partnership trade deal, which the US signed up to in February 2016. Sticking to his earlier pledges, President-Elect Trump has stated that he will leave the TPP on ‘day one’ of taking office; a strong sign of an anti-globalisation movement.
US data to watch out of today will include the afternoon’s existing home sales figures for October, which are expected to show a reduction from 5.47m to 5.3m.
Australian Dollar (AUD)
Owing to the latest slump in US Dollar demand, the Australian Dollar has risen considerably today, rallying across the board against its regular peers.
In commodities news, the price of iron ore has fallen once again today, owing to strong Chinese stockpiles lowering overall demand.
Tomorrow will see the early Australian construction work figure announced for Q3; this is expected to show an ‘improvement’ on the quarter from -3.7% to -0.7%.
New Zealand Dollar (NZD)
With domestic data still in short supply this week, the New Zealand Dollar has dipped overall on account of Trump’s plan to leave TPP, of which New Zealand is a member.
Signing the multinational trade deal took many years of negotiation and deliberation, and the latest news from the US has come as a major blow to NZ investors who were hoping for stronger links between New Zealand and the US.
In domestic news, visitor arrivals on the year in October have risen from 13% to 14%, instead of dipping as expected.
Thursday night is set to see New Zealand’s October trade balance figures announced, which are presently predicted to show a reduction of the deficit from -1436m to -805m.
Canadian Dollar (CAD)
Both crude oil and gold prices have risen consistently so far this week, which has served to continually raise demand for the Canadian Dollar.
Less supportively for the CAD, however, has been Monday’s wholesale sales figure for September, which fell from 0.8% to -1.2% on the month.
This afternoon’s Canadian data is expected to include September’s retail sales rising on the month and year, which could well boost CAD gains further.