The Sterling pound today fell to new 27-month lows against the US dollar as markets reacted to a poor UK jobs report and the uncertain British political environment. The GBP/USD currency pair was also adversely affected by comments from the two remaining Conservative Party candidates saying that the Irish backstop was dead.
The US dollar is mixed against most currencies at the end of the trading week, driven by the latest inflation numbers. The greenback is also finding direction on expectations that the central bank will cut interest rates at the end of the month, according to signals during this week’s semi-annual testimony in front of Congress and latest Federal Open Market Committee (FOMC) minutes.
The euro today rallied higher in the Asian session as investors reacted to Jerome Powell‘s dovish comments during his testimony before Congress. The EUR/USD currency pair later fell from its daily highs in the American session following the release of upbeat US inflation data.
The Japanese yen is strengthening against several currencies on Thursday, despite plenty of weak data suggesting that the world’s third-largest economy could be cooling down. The yen might be gaining steam on two things: expectations that the central bank could follow the Federal Reserve’s lead and slash interest rates or breathe a sigh of relief that the US and China have renewed trade talks.
The euro today rallied to new daily highs breaking out of a 3-day losing streak as markets reacted to Jerome Powell’s dovish comments during his testimony before Congress. The EUR/USD currency pair performance today was largely driven by investor sentiment and US dollar dynamics due to the empty European dockets.
The Swiss franc, as well as other safe currencies like the US dollar and the Japanese yen, were extremely strong on Tuesday amid speculations whether the Federal Reserve will cut interest rates this year and how much. Domestic macroeconomic data was also supportive of the Swissie.
The US dollar today rallied to almost 3-week highs as market hopes for future rate cuts from the US Federal Reserve dissipated in the face of positive US jobs data. The greenback also benefitted from the uncertainty surrounding the US-China trade war that caused a significant sell-off in US equity markets and high demand for the dollar.
The US dollar was mixed today, falling versus commodity currencies, but staying flat or gaining versus majors. There were plenty of various fundamentals that were affecting the greenback.
The euro today traded mostly sideways with a bearish tilt as markets digested the less dovish message issued by Jerome Powell the US Fed Chairman during his speech yesterday. The EUR/USD currency pair traded in a tight range amid a lack of any major macro releases from the European docket.
The British pound today rallied to its daily highs early in the session driven largely by US dollar weakness as investors expect the Fed to announce its rate cut plans. However, the GBP/USD currency pair quickly dropped following comments by Boris Johnson regarding the October 31st Brexit deadline.
