The New Zealand dollar was soft today, falling against the majority of most-traded currencies, though managing to eke out gains versus its commodity peers (but it has lost gains against the Canadian dollar by the time of writing). The kiwi fell despite better-than-expected inflation data.
The British pound sterling rose against its major currency peers amid higher-than-expected inflation to cap off 2020 in the United Kingdom. Across the board, the cost of living was higher in December, leading to speculation that this could be the start of soaring price inflation in the aftermath of billions in fiscal and monetary stimulus and relief. But how much of an impact will this have on the pound?
The US dollar is trading higher as investors take more of a cautious approach to the financial markets in the middle of the trading week. Traders are combing through the data, including consumer prices and mortgage lending, but they are also keeping an eye on the US impeachment vote. The greenback is continuing its surprisingly strong start to 2021, but can the currency keep up the momentum?
The Australian dollar fell today together with other commodity currencies as investors were more interested in safer currencies, like the US dollar and the Japanese yen (but not the Swiss franc). That suggests that markets were in a risk-off mode, and the decline of European stocks during Monday’s trading session also implied that it was the case. The Aussie was attempting to rebound, getting support from better-than-expected macroeconomic releases in Australia […]
The market sentiment was still favoring riskier currencies over safer ones, and that reflected in the performance of the Swiss franc. The Swissie declined against commodity currencies while holding steady versus other rivals. The worse-than-expected domestic inflation data did not seem to have a material impact on the franc.
The British pound sterling advanced to its highest level against the US dollar in more than two years, driven by a weakening greenback and lower-than-expected inflation. The currency is also finding support on growing odds of a Brexit trade deal after officials stated that both sides are creating a path to establishing an agreement.
The euro today inched higher against the dollar as investor risk appetite increased slightly on hopes that the US Congress will reach a stimulus deal soon. The EUR/USD currency pair’s rally was also boosted by news regarding the approval of Pfizer’s COVID-19 vaccine in the US and the fast-tracking of the same in Europe.
The US dollar is struggling to hold onto its weekly gain against some of its key currency pairs as the number of Americans filing for first-time unemployment benefits surged to its highest level since September. Higher inflation and fiscal stimulus negotiations stuck at a standstill weighed on the greenback. How much more room is there for the buck to fall to wind down 2020?
The US dollar firmed by the end of Wednesday’s trading session, trimming losses against some peers and erasing them completely against others. Market analysts pointed at the slump of the US stock market as the likely reason for the recovery of the greenback.
The Brazilian real weakened against multiple currency rivals in the middle of the trading week, driven mostly by higher-than-expected inflation last month. Investors are also keeping an eye on monetary policy as the central bank is anticipated to leave interest rates at historic lows. Despite being one of the worst-performing currencies in foreign exchange markets, the real has rebounded more than 4% against the US dollar over the last month.
